Part 2Functions of judicial factor

Functions of judicial factor

13Functions of judicial factor

(1)

It is the general function of a judicial factor to hold, manage, administer and protect the factory estate for the benefit of persons with an interest in the estate.

(2)

The general function is subject to—

(a)

any variation—

(i)

set out in the appointing interlocutor by virtue of section 14(1),

(ii)

made by the court by virtue of section 14(2),

(b)

any provision in any other enactment by virtue of which functions are imposed on or withheld from the judicial factor.

(3)

In exercising the general function and the factory functions a judicial factor must—

(a)

exercise care, prudence and diligence,

(b)

take professional advice when appropriate.

(4)

In complying with subsection (3)(b), the judicial factor may consult the Accountant as to whether it is appropriate to take professional advice in a particular case.

(5)

The judicial factor must not delegate the general function or any factory function except and to the extent—

(a)

authorised by the Accountant,

(b)

specified in the appointing interlocutor,

(c)

permitted under this Act or any other enactment.

(6)

The standard powers vest in the judicial factor—

(a)

on the appointment date, or

(b)

where the court has imposed a requirement to find caution, on the date on which the Accountant confirms to the court and the judicial factor in writing that the requirement has been satisfied.

(7)

In this section, “the factory functions” means—

(a)

subject to any variation made by the court by virtue of section 14(1)(a) or (2)(a), or any provision in any other enactment by virtue of which functions are imposed on or withheld from the judicial factor—

(i)

the standard powers,

(ii)

the functions set out in sections 15 to 22,

(b)

any function conferred by the court by virtue of section 14(1)(b) or (2)(b).

(8)

In this section and in section 14, “the standard powers”—

(a)

means all of the powers of a natural person beneficially entitled to the estate,

(b)

includes, in particular, the power to take any or all of the measures listed in schedule 1.