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

Meera, the chief financial officer of Kaveri Textiles Ltd, is sued for negligence over an inventory valuation error. The court finds she may be liable, but that she acted honestly and reasonably and ought fairly to be excused. Which relief is within the court's power under section 463?

The court may relieve the officer wholly or partly from liability on terms it thinks fit, because she acted honestly and reasonably and ought fairly to be excused. Partial relief is expressly allowed, and no Registrar consent is needed.

  1. ARelieve her wholly or partly from liability on such terms as it thinks fitCorrect
  2. BRelieve her wholly only, since partial relief is not permitted
  3. CRelieve her only if the Registrar consents in writing
  4. DRelieve her only from criminal liability, never from civil liability

Explanation

Section 463(1) lets the court relieve an officer either wholly or partly from liability on such terms as it thinks fit, provided the officer acted honestly and reasonably and ought fairly to be excused. Partial relief is expressly allowed, and Registrar consent is not required; the Registrar is only called to show cause.

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