Officers in Default

Part 5 – Duties of Directors and Other Officers

Re-enactment of Section 383 of the 1963 Act

Sections 270 and 271 re-enact, in a slightly expanded form, Section 383 of the 1963 Act.

The word “default” includes a refusal to do a thing or a contravention of a provision.

There is a rebuttable presumption that a defendant permitted a default if it is appears that no reasonable steps were taken by that defendant to prevent it.

A defendant may, as a defence, argue that he was unable to take reasonable steps due to circumstances beyond his control.