Judicial recovery is a legal procedure through which companies in economic crisis seek to restructure themselves while remaining operational, preserving jobs and tax revenue. During the procedure, it is natural for the company to continue to be managed by its former administrators, since, according to the principles of the procedure, they are the most capable of restructuring the company, after all, they know it well.
However, there are cases in which the conduct of the administrator gives rise to his removal, such as his conviction for crimes committed in previous judicial recovery or bankruptcy or for crimes against assets, the popular economy or the economic order; if he has acted with intent, simulation or fraud against the interests of his creditors; if the company's assets are depleted; or if he refuses to provide information requested by the judicial administrator. In these cases, although traumatic, the removal of the administrator can be a crucial measure for the success of the judicial recovery.
The purpose of the measure is to protect the interests of creditors and ensure the maintenance of an administrative quorum that effectively seeks the effective recovery of the company in crisis. Thus, if it is found that crimes or acts contrary to the interests of creditors and the business company itself have been committed, the former administrator will be dismissed and a new one will be appointed by the court responsible for the judicial recovery.
The legislator's intention was to protect the good faith of the debtor who seeks through judicial recovery the necessary means to restructure himself and remain in his market. Therefore, it is unacceptable for the procedure to be used by the bad debtor as a way to exempt himself from his obligations, squander the assets of the business company or even commit crimes in order to avoid paying his debts.
Thus, the dismissal of a company's administrator, although traumatic, is not a bad thing, since the replacement will be in line with the interests of creditors and the company itself. This may increase the confidence of creditors and investors, demonstrating a commitment to transparency and responsibility in management. This renewal may breathe new life into the judicial recovery process, facilitating the use of recovery methods to overcome the crisis and pay creditors, which is extremely positive. Thus, the dismissal of a company administrator is an important tool in the judicial recovery process. Although traumatic, since it directly changes the management of the company, it is a great opportunity for the administrative reorganization of the company and reestablishing the confidence of creditors and investors.