Class Action: A stillborn Section of company law

The company law has many Sections, which have the words 'as may be prescribed'

It has been four years since Parliament passed the amended Companies Act. Yet one key Section of the law remains inoperative.

In the long run-up to the passing of the new law and during its initial days, Section 245 of the Companies Act, which provides for class action suits, was presented as one of its exciting new elements.

A lot of analysis has been made about how this will mark the dawn of a new era, in which large groups of investors could get their grievances redressed or receive damages from errant companies.

It was supposed to be India’s answer to Satyam Computer-like