In force2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 12 · General Provisions Applicable to Parts 4 to 11

263. Power to grant relief

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(1)

If, in any proceedings for negligence, default, breach of duty or breach of trust against a person to whom this section applies, it appears to the court before which the proceedings are taken that the person is or may be liable in respect of the negligence, default or breach, but that the person has acted honestly and reasonably and that, having regard to all the circumstances of the case including those connected with the person’s appointment, the person ought fairly to be excused for the negligence, default or breach, the court may relieve the person either wholly or partly from his or her liability on such terms as the court thinks fit.

(2)

To avoid doubt and without limiting subsection (1), in subsection (1), “liability” includes the liability of a person to whom this section applies to account for profits made or received.

(3)

Where any person to whom this section applies has reason to apprehend that any claim will or might be made against him or her in respect of any negligence, default, breach of duty or breach of trust, he or she may apply to the Court for relief, and the Court has the same power to relieve him or her as under this section it would have had if it had been a court before which proceedings against him or her for negligence, default, breach of duty or breach of trust had been brought.

(4)

The persons to whom this section applies are —

(a)

any officer of a corporation;

(b)

any person employed by a corporation as an auditor, whether the person is or is not an officer of the corporation; and

(c)

any person who is a receiver, receiver and manager, judicial manager or liquidator appointed or directed by the Court to carry out any duty under Parts 4 to 11 in relation to a corporation and every other person so appointed or so directed.