However, the most important change of the year was the passage of The Companies Act, 2013, which will bring in significant changes in the way companies function and is likely to better protect the interest of shareholders. Among other things, the new law provides details for the buyout of the minority shareholders and simplifies the rules for mergers. The most notable idea of the Act is the provision for class action suit. Shareholders and depositors in a company can now hold the management accountable in case of wrongdoing. Shareholders can claim damages from the company and its directors for any unlawful or wrongful act on their part. Further to this, auditors, too, can be held responsible for misleading and improper statements.
‘Enforcement 40’ for 2020
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