Interim judicial factor
10.Section 3(1) makes provision for the appointment of an interim judicial factor. This can be done while an application under section 1(1), or a motion under section 1(3)(a)(ii), for appointment of a permanent judicial factor is undergoing consideration. In either case, to appoint an interim judicial factor the court must consider that the appointment would be necessary or expedient, for example where a business partnership has deteriorated to the extent that the business is at risk unless immediate action is taken. Applications for the appointment of an interim judicial factor can be made by the original applicant under subsection 1(1), or, where a motion has been made under section 1(3)(a)(ii), by the applicant or another party to the proceedings provided they fall within the definition of “interested person” in section 1(7). The court may also appoint an interim judicial factor, pending determination of an application under section 1(1) or a motion under section 1(3)(a)(ii), without any application having been made. There is no requirement for the conditions of appointment set out in section 4 to apply in order for an interim judicial factor to be appointed.
11.Subsection (2) makes clear that the provisions of the Act apply to an interim judicial factor, unless the context requires otherwise or the court makes different provision when appointing the interim judicial factor. Subsection (3) requires the Accountant to review the progress being made by any interim judicial factory – since appointment of interim judicial factors will be open-ended, there will be no need for the court to order extensions to their appointment. The review provision therefore provides a mechanism by which to ensure that satisfactory progress is being made.
