Co-operatives Act, 2005 (Act No. 14 of 2005)

Regulations

Co-operatives Administrative Regulations, 2016

Chapter 2 : Winding Up and Judicial Management of Co-operatives

Part B : Judicial Management of Co-operatives

122. Circumstances in which co-operatives may be placed under judicial management

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(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.