227H. Power to deal with charged property, etc.

Question 1

227H. Power to deal with charged property, etc.

Answer 1

General overview
[227H.01] This section empowers a judicial manager to dispose of or exercise his powers in relation to all or part of the company’s property or undertaking free from the security attached to it: s 227H(1). This sweeping power of the judicial manager distinguishes him from a receiver or receiver and manager. Often times, a judicial manager would need to scout for a “white knight” or an “angel” who can inject capital into the company to resuscitate it and turn it around to be a viable enterprise again. Hence, such a power is necessary to enable a judicial manager to deal with the whole of the undertaking of the company to achieve one or more of the three purposes stated in s 227A.