Legal Action against Companies for Non-Redressal of Investor Grievances

Legal Action against Companies for Non-Redressal of Investor Grievances

The Ministry of Corporate Affairs has initiated legal action under various provisions of the Companies Act, 1956 against companies for non-redressal of investors’ grievances during the last three years as under:

            Giving this information in written reply to a question in the Lok Sabha today, Shri Salman Khurshid, Minister of Corporate Affairs, said that as informed by NSE and BSE, there are no major complaints pending against listed companies regarding default in payment of dues to small investors. As on March 31, 2010, there were about 12 companies at NSE and 18 companies at BSE which are actively trading and have pending complaints of non-payment of dues. These complaints relate to issues like non-receipt of dividend, non-receipt of refund and interest on debentures, Shri Khurshid informed the House. He further informed the Lok Sabha that there is no provision for a Rehabilitation package of repayment of small investors. However, the Company Law Board (CLB), under section 58A (9) of the Companies Act, 1956 has powers to issue suitable directions for the repayment to the small depositors.