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CS Professional · Compliance Management, Audit and Due Diligence · Relief and Remedies

A High Court is inclined to excuse Sunita, an officer of Prabha Foods Ltd, on her application under Section 463. Which procedural step must the court complete before granting any relief?

The court must first serve notice, in the manner it specifies, requiring the Registrar and any other person it thinks necessary to show cause why relief should not be granted. Section 463(3) makes this a precondition to relief under either sub-section (1) or (2).

  1. AObtain written approval from the company's auditor
  2. BHold a general meeting of shareholders to ratify the relief
  3. CServe notice requiring the Registrar and any other necessary person to show cause why relief should not be grantedCorrect
  4. DWait for the Central Government to notify the relief

Explanation

Section 463(3) bars relief under sub-section (1) or (2) unless the court has, by notice served in the manner it specifies, required the Registrar and any other person it thinks necessary to show cause why relief should not be granted. Auditor, shareholder or Central Government steps are not required.

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