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Firms have no right to know

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Our Bureau Mumbai
Last Updated : Feb 15 2013 | 4:38 AM IST
India Inc does not have any legal right to seek information under the Right to Information Act 2005. Legal views sought by the banking industry have made it clear that a firm incorporated under the Companies Act, 1956, or any other corporate body, does not enjoy such rights.
 
Even though legal opinion was sought by the banking sector, by implication, no public sector undertaking will be answerable to any company under the Right to Information Act.
 
While advising its members to decline any request put up by a company seeking information under the Act, the Indian Banks' Association has said, "It is now well settled that the rights conferred by Article 19 are confined to natural persons who are citizens and that a corporation not being a citizen cannot claim any of the rights ... even though their shareholders are citizens."
 
The note, circulated among public sector bank CEOs, added that a corporation could claim other fundamental rights that are open to all persons (Article 14) and its shareholders may enforce Article 19.
 
"This will be applicable to other public sector undertakings as well. Besides individuals, other bodies like trusts, not covered by the Companies Act, will be able to extract information from a public authority," said a legal expert.
 
Section 3 of the Right to Information Act, 2005, provides that subject to the provisions of this Act, all citizens have the right to seek information.
 
According to the Supreme Court, the right to information is derived from freedom of speech and expression guaranteed by Article 19(1)(a) of the Constitution.
 
RIGHT-LESS!
 
A firm incorporated under the Companies Act, 1956, or any other corporate body, does not enjoy the Right to Information
 
No public sector undertaking will be answerable to any company under the Right to Information Act
 
A corporation can claim other fundamental rights that are open to all persons (Article 14) and its shareholders may enforce Article 19
 
Besides individuals, other bodies like trusts, not covered by the Companies Act, will be able to extract information from a public authority
 
Subject to the provisions of the Act, all citizens have the right to seek information

 

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First Published: Nov 15 2005 | 12:00 AM IST

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