With lessons from the multi-crore rupee Satyam fraud case, the government is planning to include the concept of class action suit in new Companies bill, likely to be introduced in the current session of Parliament, to help investors claim damages from fraudulent companies.
“We are planning to include class action suit in the new Companies bill, 2008. This will help retail investors and small investors in fighting for their rights,” corporate affairs minister Salman Khurshid said.
He said small investors, who at present are not able, unlike in the US, to get compensation in cases of fraud due to the absence of any such law, will be able to fight for justice with class action suits. Class action suit is one brought by one party on behalf of a group of individuals to file for claims against erring companies in a court of law.
