On 25/05/2013,
you requested for the version in force on 25/05/2013
incorporating all amendments published on or before 25/05/2013.
The closest version currently available is that of 18/04/2013.
227B.
—(1) Where a company or its directors (pursuant to a resolution of its members or the board of directors) or a creditor or creditors (including any contingent or prospective creditor or creditors or all or any of those parties, together or separately), pursuant to section 227A, makes an application (referred to in this section as an application for a judicial management order) for an order that the company should be placed under the judicial management of a judicial manager, the Court may make a judicial management order in relation to the company if, and only if, —
(a)
it is satisfied that the company is or will be unable to pay its debts; and
(b)
it considers that the making of the order would be likely to achieve one or more of the following purposes, namely:
(i)
the survival of the company, or the whole or part of its undertaking as a going concern;
(ii)
the approval under section 210 of a compromise or arrangement between the company and any such persons as are mentioned in that section;
(iii)
a more advantageous realisation of the company’s assets would be effected than on a winding up.
[13/87; 42/2005]
(2) Any judicial management order made under subsection (1) shall direct that during the period in which the order is in force the affairs, business and property of the company shall be managed by a judicial manager appointed for the purpose by the Court; and such an order shall specify the purpose or purposes for whose achievement the order is made.
[13/87]
(3) (a) In any application for a judicial management order under subsection (1), the applicant shall nominate a person who is a public accountant, who is not the auditor of the company, to act as a judicial manager.
(b)
The Court may reject the nomination of the applicant and appoint another person in his stead.
(c)
Where a nomination is made by the company, a majority in number and value of the creditors (including contingent or prospective creditors) may be heard in opposition to the nomination and the Court may, if satisfied as to the value of the creditors’ claims and as to the grounds of opposition, invite the creditors to nominate a person in his stead and, if it sees fit, adopt their nomination.
(d)
Nothing in this subsection shall prevent the Minister from himself nominating a person to act as a judicial manager if he considers that the public interest so requires and in such a case the Minister may be heard in support of his nomination and for this purpose may be represented.
(e)
Notwithstanding paragraph (a), where a person is appointed by the Court or nominated by the Minister to act as a judicial manager that person need not be a public accountant.
[13/87; 5/2004]
(4) When an application for a judicial management order is made to the Court, notice of the application —
(a)
shall be published in the Gazette and in an English and Chinese local daily newspaper and a copy thereof sent to the Registrar; and
(b)
shall be given —
(i)
to the company, in a case where a creditor is the applicant; and
(ii)
to any person who has appointed or is or may be entitled to appoint a receiver and manager of the whole (or substantially the whole) of a company’s property under the terms of any debentures of a company secured by a floating charge or by a floating charge and one or more fixed charges. In the case of any such floating charge created by an instrument before 15th May 1987, it shall be deemed to contain a power to appoint a receiver and manager in the event that an application under this section is made for the appointment of a judicial manager with the result that the holder of that floating charge shall, in accordance with this paragraph, be given notice of the application.
[13/87; 42/2005]
(5) Subject to subsection (10), the Court shall dismiss an application for a judicial management order if it is satisfied that —
(a)
a receiver and manager referred to in subsection (4) has been or will be appointed; or
(b)
the making of the order is opposed by a person who has appointed or is entitled to appoint such a receiver and manager.
[13/87]
(6) On hearing the application for a judicial management order, the Court may dismiss the application or adjourn the hearing conditionally or unconditionally or make an interim order or any other order that it thinks fit.
[42/2005]
(7) A judicial management order shall not be made in relation to a company —
(a)
after the company has gone into liquidation;
(b)
where the company is a bank licensed under the Banking Act (Cap. 19) or is a finance company licensed under the Finance Companies Act (Cap. 108); or
(c)
where the company is an insurance company licensed under the Insurance Act (Cap. 142).
[13/87]
(8) A judicial management order shall, unless it is otherwise discharged, remain in force for a period of 180 days from the date of the making of the order but the Court may, on application of a judicial manager, increase this period subject to such terms as the Court may impose.
[13/87]
(9) The costs and expenses of any unsuccessful application for a judicial management order made under this section shall, unless the Court otherwise orders, be borne by the applicant and, if the Court considers that the application is frivolous or vexatious, it may make such orders, as it thinks just and equitable, to redress any injustice that may have resulted.
[42/2005]
(10) Nothing in this section shall preclude a Court —
(a)
from making a judicial management order and appointing a judicial manager if it considers the public interest so requires; or
(b)
from appointing, after the making of an application for a judicial management order and on the application of the person applying for the judicial management order, an interim judicial manager, pending the making of a judicial management order, and such interim judicial manager may, if the Court sees fit, be the person nominated in the application for a judicial management order. The interim judicial manager so appointed may exercise such functions, powers and duties as the Court may specify in the order.
[13/87; 42/2005]
(11) For the purposes of this Part, “property” in relation to a company includes money, goods, things in action and every description of property, whether real or personal, and whether in Singapore or elsewhere, and also obligations and every description of interest whether present or future or vested or contingent arising out of, or incidental to, property.
[13/87]
(12) The definition in section 254(2) of “inability to pay debts” shall apply for the purposes of this section as it applies for the purposes of Division 2 of Part X.
[13/87]