Minimum Percentage of Shareholders and Depositors to File a Class Action Suit Prescribed
The Ministry of Corporate Affairs (“MCA”) has amended Rule 84 of the National Company Law Tribunal Rules, 2016 with effect from May 08, 2019. Pursuant to this change, the minimum number or percentage of ‘shareholders’ or’ depositors’ required to file a ‘class action suit’ under Section 245 of the Companies Act, 2013 have been provided as per below.
Class Actions Suits - to be filed by ‘members’ of a Company
Class Action Suits - to be filed by ‘depositors’ of a Company
Prior to this amendment, only the minimum number of members and/or depositors required to file a class action suit was prescribed. Post this amendment, the number of members and depositors who can file class action suits against the concerned company has been clearly defined. This is a big step in ensuring the rights of the minority shareholders by providing them an effective redressal mechanism.