Generally, there are two distinct business rescue mechanisms available under the Companies Act 2016, which are judicial management and company voluntary arrangement. For the purposes of our assignment, only judicial management mechanisms will be discussed. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The judicial management process basically ensures that the directors, shareholders or creditors of a particular company approach the court to appoint a qualified judicial manager to handle the management of the company when the situation of improvement or restoration of the company is required. 'company[1]. The creditor or creditors of the company have the right to request judicial management[2]. However, the request for judicial management by creditors is subject to the conditions that the interest of creditors would be better served than by liquidation[3]. Judicial management under the Companies Act 2016 has proven to be more pro-creditor than pro-debtor. This is because the law includes provisions that grant certain benefits to a company's creditors. The best example to illustrate this is section 405(1) of the Companies Act 2016 which allows a creditor, which includes a prospective or potential creditor, to apply for a judicial management order. Once the condition for submitting a judicial management is met, the applicant, i.e. the creditor, appoints the judicial director. Section 405(5) (b) of the Companies Act 2016 gives the applicant the power to appoint an interim judicial administrator. Throughout the process of requesting judicial management until such requests become an order or are rejected, the company cannot adopt any resolution, no security can be enforced and no proceedings can take place without the permission of the Court[4]. The peculiarity of judicial management is that the moratorium begins automatically as soon as the judicial management procedure begins. During the six-month moratorium period the company cannot be liquidated[5]. In addition to this, the company will also be protected from any legal proceedings and no shares can be issued or transferred[6]. This period of time could be further extended to another six months if the Court so requests[7]. The judicial manager plays an important role in the judicial management process where he is required to look after the management of the company and carry out the tasks that the Court orders him to carry out. In addition to this point, the judicial director also has the duty to prepare and present an adequate restructuring plan for the improvement of the company. It will be approved with a constant majority of 75% of the total value of the creditors whose credit has been recognized by the judicial administrator during the creditors' meeting. In the event that this restructuring plan is approved by the creditors, the judicial administrator will proceed to ask the Court to have the plan legally authorized. The brief process on how a judicial management process could take place in a company is explained above. There are also situations which once again reaffirm the judicial administrator as a creditor whereby the creditor or the partners of the company must seek relief from the court when the affairs and assets of the company managed by the judicial administrator have been carried out in an unfairly prejudicial manner which has affected the interests of creditors or members[8] or any act or omission of the judicial administrator was of a highly prejudicial nature[9]. In other words, the creditor members can appeal to the Court during the.