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

Ramesh is sued for breach of trust as an officer of Lotus Pharma Ltd. The court finds he is liable and that he acted honestly, but he failed to act reasonably in the circumstances. Is relief available under Section 463?

No. Section 463(1) requires that the officer acted honestly and reasonably, and that he ought fairly to be excused having regard to all circumstances. Since Ramesh did not act reasonably, the conditions are not met and neither full nor partial relief can be granted.

  1. ANo, because the court must find that he acted both honestly and reasonably and ought fairly to be excusedCorrect
  2. BYes, honesty alone is sufficient
  3. CYes, but only partial relief
  4. DYes, if the Registrar does not object

Explanation

Section 463(1) requires that the officer acted honestly and reasonably and, considering all circumstances including those connected with his appointment, ought fairly to be excused. Honesty alone is insufficient, so options B and C fail.

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