Section 425. Protection of interests of creditors and members

(1) At any time when a judicial management order is in force, a creditor or member of the company may apply to the Court for an order under this section on the ground that—

(a) the company’s affairs, business and property are being or have been managed by the judicial manager in a manner which is or was unfairly prejudicial to the interests of its creditors or members generally or of some part of its creditors or members, including at least the creditor or member himself, or of a single creditor that represents twenty-five per centum in value of the claims against the company; or

(b) any actual or proposed act or omission of the judicial manager is or would be so prejudicial.

(2) On an application under this section, the Court may, by order—

(a) give relief in respect of the matters complained of;

(b) adjourn the hearing conditionally or unconditionally; or

(c) make an interim order or any other order that the Court thinks fit.

(3) Subject to subsection (4), an order made by the Court under this section may—

(a) regulate the future management of the company’s affairs, business and property by the judicial manager;

(b) require the judicial manager to refrain from doing or continuing an act complained of by the applicant or to do an act which the applicant had complained that the judicial manager has omitted to do;

(c) require the summoning of a meeting of creditors or members for the purpose of considering such matters as the Court may direct; or

(d) discharge the judicial management order and make such consequential provision as the Court thinks fit.

(4) An order made under this section shall not prejudice or prevent the implementation of any composition or scheme approved under section 366.

(5) Where the judicial management order is discharged, the judicial manager shall lodge with the Registrar an office copy of the order within seven days from the date of the discharged order.

(6) A judicial manager who, without reasonable excuse, contravenes subsection (5) commits an offence and in the case of continuing offence, to a further fine not exceeding five hundred ringgit for each day during which the offence continues after conviction.