What is Judicial Management?

  • This option is only available for companies.
  • The court will appoint a judicial manager to run the company and to pay off the company’s debts as and when money becomes available.
  • Companies sometimes apply for judicial management in order to prevent creditors from bringing a court action to have the company declared bankrupt and subsequently liquidated.
  • The new Companies Act (2008) provides a better alternative in the form of business rescue proceedings.
Subject: 
Directors and Officers Liability