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

Sunita Iyer, a director, seeks relief under Section 463(1) in a civil suit for breach of trust. The court finds she may be liable and acted honestly, but it considers that her appointment was irregular and she took no care to verify the transaction. Which approach reflects Section 463(1)?

Relief depends on the officer having acted both honestly and reasonably, and on the court finding that, considering all circumstances including those connected with her appointment, she ought fairly to be excused. Honesty alone is not enough, and relief may be whole or partial on terms the court sets.

  1. ARelief is automatic once honesty is shown
  2. BRelief requires honest and reasonable conduct and that, having regard to all circumstances including those connected with appointment, she ought fairly to be excusedCorrect
  3. CRelief requires only that no loss occurred to the company
  4. DRelief may be granted only wholly, never partly

Explanation

Section 463(1) requires that the officer acted honestly and reasonably and that, regarding all circumstances including those connected with appointment, he ought fairly to be excused. Honesty alone is insufficient, and the court may relieve wholly or partly on such terms as it thinks fit.

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