227A. Application to Court for a company to be placed under judicial management and for appointment of a judicial manager Flashcards
227A. Application to Court for a company to be placed under judicial management and for appointment of a judicial manager
General overview
[227A.01] Section 227A is another corporate rescue strategy for companies facing liquidity problems and perhaps impending insolvency. Much like the s 210 scheme of arrangement which the company enters into with its creditors to reschedule its debts so as to avoid winding up actions against the company, the s 227A procedure which is called a judicial management allows the appointment of a judicial manager by the court to take charge of the company’s business and affairs with a view to rehabilitate it, or preserve it as a going concern, or otherwise better protect the interests of the creditors than in a winding up: Re Atlantic Computer Systems plc [1992] Ch 505, CA . The whole judicial management process is governed by ss 227A–227X or Part VIIIA of the Act. Further, see Choong and Rajah, Judicial Management in Singapore (1990, Butterworths).
