Skip to content

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

Kiran, an officer of Orbit Logistics Ltd, is sued for default. Which combination of findings must the court reach before it may excuse him under section 463(1)?

The court must find that he is or may be liable, but acted honestly and reasonably and, having regard to all circumstances including those of his appointment, ought fairly to be excused. Both honesty and reasonableness are required.

  1. AHe acted honestly and reasonably, and having regard to all circumstances including those connected with his appointment, ought fairly to be excusedCorrect
  2. BHe acted honestly, and the company suffered no loss
  3. CHe acted reasonably, and the Registrar has not objected earlier
  4. DHe is not liable at all for the default

Explanation

Section 463(1) applies where the officer is or may be liable but acted honestly and reasonably and, considering all circumstances including those connected with his appointment, ought fairly to be excused. Absence of loss is not a condition, and the officer need only be or possibly be liable.

Did you get it right without looking?

One question tells you little. A timed set on Relief and Remedies shows your real accuracy, how long you take and where you lose marks.

Practise Relief and RemediesFree diagnostic mock

More Relief and Remedies questions