Press Information Bureau

Government of India

Ministry of Corporate Affairs

08-August-2011 18:25 IST

The Minister of State in the Ministry of Corporate Affairs today informed the Rajya Sabha that the Companies Bill 2011 is under finalization based on recommendations of the Parliamentary Standing Committee on Finance and inputs received from all relevant interest groups.

In reply to a written question the Companies Bill adequately empowers the shareholders associations or group of shareholders to enable them to take legal action in case of fraud through ‘class action suits’ the Minister said yes.

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ST/-

Class action suits enable shareholder associations to sue for corporate fraud under the Companies Bill being finalised. The Companies Bill is being finalised on the basis of Parliamentary Standing Committee recommendations and stakeholder inputs and expressly empowers class action suits by shareholder associations or groups of shareholders to enable collective legal action in cases of fraud, clarifying standing for collective redress and strengthening investor protection.