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

Anil, a director of Kaveri Infra Ltd, learns that shareholders may sue him for breach of duty over a board decision, though no suit has been filed. He wants protection in advance. Under Section 463, what is the correct course?

He may apply to the High Court. Under Section 463(2), an officer who reasonably apprehends proceedings for negligence, default, breach of duty, misfeasance or breach of trust can seek relief in advance, and the High Court has the same power to relieve him as a court hearing the case.

  1. AHe must wait until a suit is filed, as no relief can be sought earlier
  2. BHe may apply to the High Court for relief, which has the same power as a court hearing the proceedingsCorrect
  3. CHe may apply to the Tribunal, which has the same power as a High Court
  4. DHe may apply to the Registrar, who can excuse him by order

Explanation

Section 463(2) lets an officer who has reason to apprehend proceedings apply to the High Court for relief, with the same power as under sub-section (1). Waiting is not required. The Tribunal and Registrar are not named for such applications.

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