“Within the company law framework, we don’t have a system of compensation (for people filing class action suits against a company)... that is the major lacuna we are trying to address in the Bill (Companies Bill 2009),” Corporate Affairs Minister Salman Khurshid said here on Wednesday.
As per the provisions of the proposed bill, re-introduced in the Lok Sabha in August, shareholder associations can take legal action in case of company fraud, and also take part in investor protection activities and class action suits.
"Specifically we are enabling the moving of class actions. I think this will be considered in more details. The problem with any class action is that the facility should be there. People should be enabled to move against defaulters," Khurshid said after a conference on class action suits.
Published 28 October 2009, 15:38 IST