| (1) |
When any co-operative by reason of mismanagement or for any other cause— |
| (a) |
is financially distressed in that it appears reasonably unlikely that the co-operative will be able to pay all of its debts or discharge its financial obligations as they become due and payable within the immediate ensuing six months; or |
| (b) |
it appears to be reasonably likely that the co-operative will become in solvent within the immediate ensuing six months; or |
| (c) |
has otherwise not become or id prevented from becoming a successful concern, and there is a reasonable probability that, if it is placed under judicial management, |
it will be enabled to pay its debts or to meet its obligations and become a successful concern, a competent court or the Tribunal may, if it appears just and equitable, grant a judicial management order in respect of that co-operative.
| (2) |
An application to a competent court or the Tribunal for a judicial management order in respect of a co-operative may be made— |
| (a) |
by a co-operative voluntarily after a special resolution to that effect; |
| (b) |
by any interested person; or |
| (c) |
by the Tribunal on its own accord or on the recommendation of the registrar. |
| (3) |
When an application for the winding -up of a co-operative is made in terms of section 72 or 72B to a competent court or the Tribunal and it appears to that court or the Tribunal that if the co-operative concerned is placed under judicial management the grounds for its winding–up may be removed and that it will become a successful concern, and that the granting of a judicial management order would be just and equitable, such court or the Tribunal may grant such an order in respect of that co-operative. |
Protection of Businesses Act, 1978
