Administrative Law

Judicial Management (Historical)

A court-supervised rescue mechanism for financially distressed companies — superseded by business rescue under the Companies Act 71 of 2008.

Legal Definition

Judicial management was a statutory mechanism under the old Companies Act that allowed a court to place a financially distressed company under the supervision of a judicial manager to enable it to pay its debts and continue trading. It has been replaced by the business rescue provisions (Chapter 6) of the Companies Act 71 of 2008, which are faster and practitioner-supervised rather than court-supervised. References to "judicial management" in older judgments refer to this superseded procedure.

📖 Constitutional / Statutory Basis: Section 22 (freedom of trade)

Practical Example

Pre-2008, a company unable to pay its debts could apply for judicial management. Today, the equivalent is business rescue under the Companies Act.

Frequently Asked Questions

Is judicial management still available in South Africa?

No. The Companies Act 71 of 2008 repealed the judicial management provisions and replaced them with business rescue. Existing judicial management orders that were in place when the Act commenced continued under the old rules until concluded.

What is the difference between judicial management and business rescue in South Africa?

Business rescue is practitioner-led (not court-supervised from the outset), faster, and more flexible. The business rescue practitioner has significant powers to manage the company during rescue without requiring court approval for every step.

Related Terms

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