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

Arvind, a company secretary and officer of Sagar Chemicals Ltd, learns that shareholders are likely to sue him for breach of duty over a delayed filing, though no proceeding has begun. What is the correct course under section 463?

He may apply to the High Court in advance, since he reasonably apprehends a proceeding. The High Court then has the same power to grant relief as a court hearing an actual proceeding for breach of duty would have.

  1. AHe must wait until a proceeding is actually filed against him
  2. BHe may apply to the High Court for relief, which has the same power as a court hearing the proceedingCorrect
  3. CHe may apply to the Registrar, who can grant relief
  4. DHe may apply to the Tribunal only after the company passes a special resolution

Explanation

Section 463(2) lets an officer who has reason to apprehend a proceeding apply to the High Court in advance. The High Court has the same power to relieve as a court hearing the case under sub-section (1). Waiting is not required.

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