Business Ethics and Corporate Governance, Second Edition

POWER OF COURT TO GRANT RELIEF

The Companies Act provides under Section 633 the following reliefs to a director: in a proceeding for negligence, default, breach of duty, misfeasance or breach of trust against an officer of a company, it might appear to the Court that the officer has acted honestly and reasonably and that having regard to all circumstances of the case, he ought fairly to be excused. In such a case, the Court may relieve him, either wholly or partly, from his liability.

The object of Section 633 is to provide relief against undue hardship in deserving cases. But for getting relief under Section 633, it must be proved by the officer concerned that (i) he acted honestly; (ii) he acted reasonably; and (iii) having regard to all circumstances ...