Class action law suits: A step forward in investor's protection

There is a separation of ownership and control in the company form of business structure. Shareholders are owners of the company but not the one who are managing the organization; they are just the onlookers to the actions of the Board of Directors. For that reason, there may be a chance their interest is injured sometimes. Depositors or shareholders are representing a particular class of the investors, to protect their interest the new Companies Act, 2013 has made provisions regarding protection of the investors by inserting Class Action law suits. The paper gives an outline as to what are the class action suits, where they originated first with a brief history. How the scenario changed in India after Satyam Computers Corporate Scandal; which leads to the initiation of law suits representing a class of investors and what are the related provisions in Companies Act, 2013. At last, the paper states the advantages of such a valuable step in this direction.