Section 492

Power of Court to grant relief in certain cases.—(1) If in any criminal proceeding for negligence, default, breach of duty or breach of trust against a person to whom this section applies, it appears to the Court, hearing the case that that person is or may be liable in respect of the negligence, default, breach of duty or breach of trust, but that he has acted honestly and reasonably, and that having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused for the negligence, default, breach of duty or breach of trust, the Court, may relieve him, either wholly or partly, from his liability on such terms as the Court may think fit.

(2) Where any person to whom this section applies has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty, or breach of trust, he may apply to the Court for relief, and the Court on any such application shall have the same power to relieve him as if proceedings against that person for negligence, default, breach of duty or breach of trust had been brought before the Court.

(3) The persons to whom this section applies are the following namely—

(a) directors of a company;

(b) chief executive of a company;

(c) officers of a company;

(d) persons employed by a company as auditors, whether they are or are not officers of the company;

(e) liquidator of a company.

(4) The Court shall not grant any relief to any person under sub-section (1) or sub-section (2) unless it by notice served in the manner specified by it requires the Commission or the registrar and such other person, if any, as it thinks necessary to show cause why such relief should not be granted.