Section 1005 of The Companies Act No. 17 of 2015: Power of a court to grant relief in certain cases

    

(1) If, in proceedings for negligence, default, breach of duty or breach of trust against a person who—
(a) is an officer of a company; or
(b) is employed by a company as auditor (whether or not the person is an officer of the company),
it appears to the court hearing the proceedings that, although the person is or may be liable, the person acted honestly and reasonably, and that the person ought fairly to be excused, the court may make an order relieving the person from the whole or a part of the liability on such terms as it considers appropriate.
(2) A person who, being an officer of a company or employed by a company as auditor (whether or not the person is an officer of the company), reasonably believes that a claim will or might be made against the person for negligence, default, breach of duty or breach of trust may apply to the court for relief under subsection (3).
(3) On the hearing of an application made under subsection (2), the court has the same power to make an order relieving the person from liability as it would have had if it had been a court before which proceedings against the person for negligence, default, breach of duty or breach of trust had been brought.


Disclaimer: This document is not to be taken as legal advise.

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