Part 4

Distribution of factory estate, termination, recall and discharge of judicial factor

Other applications for recall and discharge

Resignation and applications for recall and discharge in other circumstances
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1
Where a judicial factor wishes to resign other than in the circumstances mentioned in section 30(1)(a) or (b), the court may, on application by the judicial factor—
a
recall the judicial factor’s appointment, and
b
discharge the judicial factor.
2
Where a person (the “applicant”) other than the judicial factor applies to have the judicial factor’s appointment recalled other than in the circumstances mentioned in section 30(1)(a) or (b), the court may recall the judicial factor’s appointment.
3
An application for recall and discharge under subsection (1), or for recall under subsection (2), must include an application for appointment of a judicial factor (a “replacement judicial factor”) on the factory estate in place of the judicial factor whose appointment is to be recalled.
4
The court must not grant recall under subsection (1) or (2) unless, at the same time, it appoints a replacement judicial factor.
5
A judicial factor who makes an application under subsection (1), or an applicant under subsection (2), must intimate the application without delay to—
a
the Accountant,
b
the judicial factor (if the judicial factor is not the applicant), and
c
any other person to whom the court directs that intimation should be made.
6
The court may dispense with the requirement in subsection (5), in whole or in part, on cause shown.
7
When the court grants recall under subsection (1) or (2), the judicial factor must send a copy of the accounts for the factory estate to the Accountant.
8
When an application for recall under subsection (2) is made—
a
the judicial factor may apply by motion for the court, if it grants the application, also to grant the judicial factor’s discharge,
b
the court—
i
may grant the application only if satisfied that the applicant has an interest in the factory estate, and
ii
must require the applicant to find caution for the expenses of the court proceedings unless it considers that, in all the circumstances, it would not be in the interests of justice to impose such a requirement.
9
On receiving a copy of the judicial factor’s accounts by virtue of subsection (7), the Accountant must audit those accounts and present to the court a report—
a
with regard to the audit, and
b
as to whether, in the Accountant’s view, where the judicial factor applied to be discharged under subsection (1) or (8)(a), the discharge ought to be granted.
10
The court must not grant—
a
discharge under subsection (1), or
b
discharge under subsection (8)(a),
until the court has received and considered a report under subsection (9), and made such further inquiry (if any) as it considers necessary.