Termination of judicial factory where insufficient funds
77.Section 36 makes provision for situations where the Accountant considers that, were the judicial factor to formulate a scheme for the distribution of the estate under section 30(1), there would not be sufficient funds in the factory estate to meet the cost of that formulation or the associated process of the judicial factor seeking approval of the scheme and thereafter distributing the factory estate.
78.Subsection (2)(a) requires the Accountant to direct the judicial factor to distribute the factory estate in the manner specified by the Accountant. Subsection (2)(b) to (c) require the Accountant to terminate the judicial factory, and recall and discharge the judicial factor. Subsection (3) provides for recording of the termination, recall and discharge in the Register of Inhibitions and subsection (4) provides that any fee for recording is to be paid from the factory estate. Subsection (5) creates an exception to subsection (2), by providing that if the Accountant is of the view that there has been, or may have been, misconduct or failure by the judicial factor, then subsection (2) will not apply, and section 41 will apply instead.
