Judicial Factors (Scotland) Act 2025

22 Duty where estate object of dispute

(1) This section applies where—

(a) the factory estate was, immediately before the appointment of the judicial factor, not being managed adequately because persons who required to agree among themselves on how to manage it could not reach such agreement, and

(b) the appointment was made wholly or mainly for that reason.

(2) The judicial factor must, by whatever method the judicial factor considers appropriate in the circumstances, promote agreement between the relevant parties as to how to manage the estate.

(3) Where the judicial factor considers that the appropriate method of promoting agreement under subsection (2) is mediation or arbitration, the judicial factor may—

(a) act as mediator or arbitrator, as the case may be, or

(b) appoint a suitably qualified person to act as mediator or arbitrator.

(4) If agreement under subsection (2) is not reached, or does not appear to the judicial factor to be able to be reached, the judicial factor must formulate a scheme, which the judicial factor considers equitable, for the management or distribution of the estate.

(5) A scheme under subsection (4) may comprise, in particular, the division and sale of all or part of the factory estate.