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

Meera, the company secretary of Sagar Pharma Ltd, learns that a complaint alleging breach of duty over a delayed filing is likely to be brought against her. No proceeding has yet started. What does the Companies Act, 2013 allow her to do?

She may apply to the High Court. Under section 463(2), an officer who has reason to apprehend proceedings for negligence, default, breach of duty, misfeasance or breach of trust can seek relief in advance, and the High Court has the same powers as a trial court under sub-section (1).

  1. AWait until proceedings begin, as no relief can be sought earlier
  2. BApply to the High Court for relief as if the proceedings had already been broughtCorrect
  3. CApply to the Registrar, who may grant relief in writing
  4. DApply to the Central Government for an advance waiver of liability

Explanation

Section 463(2) lets an officer who reasonably apprehends proceedings apply to the High Court, which has the same power to relieve as a court hearing the case under sub-section (1). The Registrar and Central Government do not grant this relief.

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