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Section 404

of Companies Act 2016

ActIn forceProvision 404 of 768

Section 404

An application for an order that a company should be placed under a judicial management and for an appointment of a judicial manager may be made to the Court by the company or its creditor if the company or its creditor considers that—

(a)

the company is or will be unable to pay its debts; and

(b)

there is a reasonable probability of rehabilitating the company or of preserving all or part of its business as a going concern or that otherwise the interests of creditors would be better served than by resorting to a winding up.