Rani Sindra, Kirit P. Mehta School of Law, NMIMS Mumbai
ABSTRACT
The Satyam scandal, which many refer to as India's largest corporate fraud, shocked the nation. The government's eyes were opened to systemic flaws, the need to ensure that auditors operate fairly and openly, etc. The protection of a company's minority shareholders in such a circumstance, however, was of utmost importance. The Companies Act of 2013 contained a number of provisions that the government introduced with the intention of protecting minority shareholders. The "class action suit" was one of the major elements added by this statute. When a board member acts in a way that is detrimental to the interests of the firm or its members, a group of minority shareholders have a way to complain to the tribunals. Yet, because this clause was first enacted in 2013, it is clear that it cannot apply retroactively. The research paper deals with the meaning of class action suit and its genesis in India. The paper further discusses the Satyam scandal in detail and how it created the necessity to adopt the concept of class action suit in India. The researcher also discusses the challenges associated with class action suit in India and in the end gives suggestions to fill certain lacunae.
Keywords: Class action suit, companies Act 2013, Satyam scam etc.
Comentaris