Section 527, The Companies Act, 2009

(1) Where, under this Act it is provided that if proceedingsare instituted by any person he shall sue in a representative capacity on behalf of himself and other members of a class the following provisions shall apply:- (a) the person may commence proceedings in such representative capacity without obtaining the consent and approval of any other member of the class represented and, subject to paragraph (b), the person shall have the sole conduct of the action and no other member of the class shall be deemed to be a party to the proceedings or in any way liable for the costs thereof; (b) any member of the class represented may at any time prior to final judgement apply to the court for leave to be made a party to the 382 383 Commission’s power of inspection. Appeals from Commission’s decisions. Representative actions. proceedings whether as co-plaintiff or otherwise and the court may grant leave upon such terms regarding the conduct of the action and otherwise as it shall think fit; and if leave is granted the applicant shall become a party to the proceedings and liable accordingly to have an order for costs made against him; (c) any judgment given in the action shall bind and innure to the benefit of all members of the class represented, whether or not they have intervened in the proceedings in accordance with paragraph (b); (d) no proceedings shall be dismissed, settled or compromised without the leave of the Court which may, if it thinks fit, order that notice of the proposed dismissal, settlement or compromise shall be given to all members of the class represented and any other (2) Nothing in this section shall affect the validity of any agreement between the members of the class represented, relating to contribution towards the costs of the party or parties suing in a representative capacity.