227G. General powers and duties of judicial manager

Question 1

227G. General powers and duties of judicial manager

Answer 1

General overview
[227G.01] Basically, the judicial manager takes over the directors’ duty to manage the company’s business and affairs to achieve one or more of the purpose(s) set out in ss 227A and 227B. Unlike in a receivership or a scheme of arrangement where the board still exercises management powers over the unencumbered assets, the directors abdicate their position and hand over their management powers to the judicial manager: s 227G(3)(a). As agent of the company, the judicial manager is subject to similar fiduciary duties as the directors: Kyrris v Oldham [2004] 1 BCLC 305, CA . However, the judicial manager need not call any meetings of the company.