Management by judiciary, also known as judicial management, is a process in which a court of law takes on the responsibility of overseeing and managing a company or organization that is in financial distress. This type of management is used when a company is facing bankruptcy or insolvency and is unable to effectively manage its affairs on its own.
Judicial management is often seen as a last resort for companies that are struggling to stay afloat. It is a legal process that allows a court to appoint a judicial manager to take control of the company and make decisions on its behalf. The goal of judicial management is to rehabilitate the company and bring it back to a financially stable position.
There are several key features of judicial management. Firstly, the court-appointed judicial manager has the authority to take over the management of the company, including making decisions on its behalf and implementing strategies to turn the company around. The judicial manager is typically an expert in financial management and has experience in rescuing companies from financial distress.
Secondly, judicial management involves a high level of oversight by the court. The judicial manager must report regularly to the court on the progress of the company’s rehabilitation, financial situation, and any actions taken to address its problems. The court may also provide guidance and direction to the judicial manager to ensure that the company is being managed effectively.
Another important aspect of judicial management is the involvement of stakeholders in the process. Creditors, shareholders, and employees of the company have the opportunity to participate in the judicial management proceedings and provide input on the company’s future. This transparency and accountability help to ensure that all parties are fairly represented in the decision-making process.
Overall, management by judiciary is a valuable tool for companies that are facing financial difficulties and need outside intervention to recover. By bringing in a judicial manager to oversee the company’s affairs and provide expert guidance, companies can receive the support they need to navigate through difficult times and emerge stronger on the other side.
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