disgorgement

The ministry of corporate affairs is looking to amend the disgorgement clause under Companies Act, 1956 to strengthen the mechanism for compensating duped investors by recouping funds from wrong-doers and paying them back to investors. Full Article

To prevent misuse of class action suits, the new Companies Act may specify a minimum number of shareholders or creditors of companies for exercising the right to file such cases, the Corporate Affairs Minister, Mr Salman Khurshid, has said. This is a major change from the current position on class action suits as mentioned in the Companies Bill, 2009, which is now before the Parliamentary Standing Committee on Finance. Full Article