Class Action Suit became reality for Indian investor(s)/depositor(s) under new Companies Act, 2013 which is also known as Representative Suit. This kind of lawsuit is very popular in countries like USA, UK, Singapore, Canada, Austria and other European Countries. Class Action Suit gained momentum with the case of Satyam, where the financials of the Company were manipulated for number of years and the Indian investors drown their hard earn money in the market due to fraud my company’s promoter. The noteworthy point was that the American depositors of Satyam was able to receive $125 million (about Rs. 700 Crore) in settlement because of strong framework of class action in USA.
- WHICH ARE THE COMPANIES AGAINST WHICH CLASS ACTION SUITS UNDER SECTION 245 CAN BE FILED?
- WHO CAN FILE CLASS ACTION SUITS
- WHO MAY BE SUED THROUGH CLASS ACTION SUITS ?
- WHICH RELIEFS MAY BE CLAIMED THROUGH CLASS ACTION SUITS?
- WHAT ACTION WILL BE TAKEN BY NCLT ON A CLASS ACTION SUIT APPLICATION?
- IF APPLICATION MADE BY MEMBER OR DEPOSITORS IS FOUND FRIVOLOUS?
- WHO WILL BEAR THE EXPENSES OF APPLICATION MADE UNDER SECTION 245 OF COMPANIES ACT, 2013?
- WHAT WILL BE THE PENALTY FOR NON-COMPLIANCE OF ORDER PASSED BY TRIBUNAL?
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