Class action - https://www.wisejay.com/openhouse/141/Protection-of-retail-investors-and-class-actions-under-Companies-Act-2013

1. S L I D E S O F A P I T C H D E C K
W H A T I S A C L A S S A C T I O N ?
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1 Advanced Law Lexicon - “a class/collective action is a
lawsuit in which a single person or small group of
individuals represents the interests of a larger group
before the court”.
W H O C A N B R I N G A C L A S S A C T I O N ?
3 Both shareholders and depositors can bring a class
action lawsuit.
H O W T O B R I N G A C L A S S A C T I O N ?
4 Shareholder and depositors can file a suit in the
National Company Law Tribunal if they are of the
opinion that the management or affairs of the company
are detrimental to the shareholders and/or depositors.
C A N A N A U D I T F I R M B E S U E D ?
5 The audit firms can also be sued for damage under
the provisions of these acts.
R E S T R I C T I O N O N T H E C O M P A N Y
6 The tribunal can restrict the company from doing
something which is beyond the limits of the
memorandum, restrict the company from breaching the
provisions of the memorandum, declare a change in the
memorandum as void, restrict the company from doing
any illegal activity and can claim damages or
compensation.
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H O W M A N Y S H A R E H O L D E R S R E Q U I R E D ?
8 At least hundred (or any percentage of total
specified) shareholders or depositors are required to
start such a suit.
R E I M B U R S M E N T
9 The shareholders and depositors may get
reimbursed for the legal expenses by the Investor
Education and Protection Fund.
I N T R O D U C T I O N O F C L A S S A C T I O N I N I N D I A
2 Class actions are introduced in section 245 of the
Companies Act 2013. A separate provision for a
"securities class action" is also provided under section 37
of the Companies Act.
F A C T S A B O U T C L A S S A C T I O N L A W S U I T I N I N D I A
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