(1)Where a company has gone into liquidation or a provisional liquidator has been appointed, the court may, on an application under this section, appoint any person to be the special manager of the business or property of the company.
(2)The application may be made by the liquidator or provisional liquidator in any case where it appears to him that the nature of the business or property of the company, or the interests of the company’s creditors or contributories or members generally, require the appointment of another to manage the company’s business or property.
(3)The special manager has such powers as may be entrusted to him by the court.
(4)The court’s power to entrust powers to the special manager includes power to direct that any provision of this Act that has effect in relation to the provisional liquidator or liquidator of a company shall have the like effect in relation to the special manager for the purposes of the carrying out by him of any of the functions of the provisional liquidator or liquidator.
(5)The special manager shall—
(a)give such security or, in Scotland, caution, as may be prescribed;
(b)prepare and keep such accounts as may be prescribed; and
(c)produce those accounts in accordance with the rules to the Secretary of State or to such other persons as may be prescribed.
Cases considering section 177 3
[2019] EWHC 2626 (Ch) · 23 September 2019
The judgment confirms that section 177 gives the court a broad discretion to appoint a special manager of a company’s business or property after liquidation, subject to satisfaction that appointment is appropriate (see paras [25]-[28]).
The judgment applies section 177(1) as conferring power to appoint a person as special manager of the business or property of a company in liquidation or subject to a provisional liquidator (see para [25]).
The judgment applies section 177(2) by treating the liquidator as the person entitled to apply for a special manager where the nature of the business or property, or stakeholders’ interests, requires such an appointment (see paras [26]-[28]).
[2018] EWHC 815 (Ch) · 2 February 2018
Applies section 177 to appoint special managers where the Official Receiver lacks the resources to manage the company’s estate and business without assistance. (see paras [16]-[18])
[2022] EWHC 1877 (Ch) · 19 July 2022
Illustrates that equivalent investigative and asset-realisation work could have been performed by a special manager, supporting the conclusion that such work may be associated with reconstituting the pools. (see para [24])
What each judgment says about section 177 is in the case-law panel in the full Act.