class action suits are going to be a reality

Companies Bill 2009 which seeks to replace the present company law is going to bring a new class of suits; class action suits! Clause 216 is going to create shareholder activism; with judicial activism we are going to see yet another chapter in the corporate legal history. Shareholders particularly minority shareholders will be entitled to join in suits commenced to attack corporate frauds! Representative action could trigger winding up of companies; change in management; takeovers! and even Government takeover!! This will bring best board practices! ICSI has timed it so nicely by bringing out a secretarial standard on board practices! Governance will improve; double speak will reduce; lest hidden agenda may get exposed!