Professional Documents
Culture Documents
Chapter-XVI
Compensation
Compensation for What?
Company,
Tribunal
Satyam Scam
However, due to the absence of any statutory
provision for Class Action under the Indian
Companies Act 1956 to sue the audit firms no
similar proceedings could be initiated by the
affected shareholders of Satyam in India. This
lacuna has been sought to be addressed by the
legislature while drafting of the Companies Act,
2013 and introducing the provision of Class
Action by way of Section 245
Other points relating to Class
Action Suits
The cost or expenses connected with the
publication of the public notice shall be borne by the
applicant and shall be defrayed by the company or
any other person responsible for any oppressive act.
Any order passed by the Tribunal shall be binding
on the company and all its members, depositors and
auditor including audit firm or expert or consultant
or advisor or any other person associated with the
company.
Provisions relating to class action suits do not
apply to a banking company.
What will the future look like