TOPIC 38: QUICK REFERENCE TO “Class Action under Companies Act, 2013”

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Quick Reference to " Class Action under Companies Act, 2013 " :-
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Points:-
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1. Legal Provision:-
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Section 245 of Companies Act, 2013. But Notified from 1st June, 2016.
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2. Meaning:-
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In Simple Words, Class Action means a Legal Action/ Lawsuit against the Company or its Directors or Auditors by the members or depositors.
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3. Requirement to File:-
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# By Members:-
∆ Company having share capital:-
Minimum 100 members or Minimum 10% of total Number of Members (whichever is lower) or any member holding Minimum 10% of issued share capital of Company.
∆ Company not having share capital :-
Minimum 20% of total Number of Members.
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# By Depositors:-
∆ Company having share capital:-
Minimum 100 depositors or Minimum 10 % of total number of Depositors (Whichever is Lower) or any depositor to whom company owes 10% of total deposits of the Company.
∆ Company Not having Share Capital:-
~ Same as Above ( having share capital ) ~.
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4. Filed to :-
NCLT ( National Company Law Tribunal ). Through form NCLT -9.
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## Few FAQ's on Class - action :-
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1. Whether Class Action is same as Oppression & Mismanagement Case ?
∆ No. In case of Oppression & Mismanagement Case, Suit can only filed by Members of the Company but in case of Class Action, Suit can be filed by Members as well as depositors.
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2. Whether Class- Action can be filed against Expert or Advisor connected to the Company?
∆ Yes. Order of NCLT is binding on them also.
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3. Whether this section is also applicable to Banking Company?
∆ Not Applicable . ( As per section 245 (9) of Companies Act, 2013.
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4. What kind of Order will provide by NCLT after filling Class- Action Suit ?
The Complete list is provided in Section 245 (1) of the Companies Act, 2013.
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5. Whether Only section 245 dealth with Class Action ?
∆ No. Rule 84 to Rule 87 of the National Company Law Tribunal Rules, 2016 is also dealth with Class Action.
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6. Whether 2 Class Action Suits can be filed for the same cause of Action?
∆ No. Its not allowed.
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Regards
ACA SOURAV BAGARIA