Hong Kong Ordinances

COMPANIES ORDINANCE - SECT 358

Power of court to grant relief in certain cases

(1) If in any 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,
that 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 under this section it would have had if it had been a court
before which proceedings against that person for negligence, default, breach
of duty or breach of trust had been brought.

(3) Where any case to which subsection (1) applies is being tried by a judge
with a jury, the judge, after hearing the evidence, may, if he is satisfied
that the defendant ought in pursuance of that subsection to be relieved either
in whole or in part from the liability sought to be enforced against him,
withdraw the case in whole or in part from the jury and forthwith direct
judgment to be entered for the defendant on such terms as to costs or
otherwise as the judge may think proper.

(4) The persons to whom this section applies are-

   (a)  officers of a company;

   (b)  persons employed by a company as auditors. (Replaced 6 of 1984 s. 248)
        [cf. 1929 c. 23 s. 372 U.K.]