|
Article B: Representative Action
|
|
|
207. (a) In this Article, “connection” – ownership,
possession, purchase or sale.
(b) A person having a
cause of action under any law as a result of a connection to a security may,
with the consent of the court as provided in section 210, sue on behalf of a
group all of whose members have a cause of action deriving from the same
connection to a security.
|
Representative action
|
|
208. A
plaintiff filing a representative action shall give notice thereof in
writing to the Attorney-General; where the cause of action arises out of
a connection to a security of a public company, the plaintiff shall also
give notice thereof to the Securities Authority.
|
Notice |
|
209. (a) A plaintiff seeking to sue in a
representative action deriving from a connection to a security of a public
company may request the Securities Authority to bear his costs.
(b) Where the Securities
Authority is convinced that the action is in the interests of the public and
that there is a reasonable chance that the court will approve it as a
representative action, the Authority may bear the plaintiff’s costs, in such sum
and on such conditions as it shall prescribe.
(c) Where the court rules
in favor of the plaintiff, it may order in its judgment indemnification of the
Securities Authority for its costs.
|
Funding by Authority
|
|
210. (a) The
court may approve a representative action if it is of the opinion that,
prima facie, all of the following conditions are fulfilled:
(1) the bases of the
cause of action are substantiated and where one such basis is damage, it is
sufficient if the plaintiff shows prima facie injury to himself;
(2) substantive questions
of fact and law common to all of the members of the group are to be settled in
the action;
(3) a representative
action is the most appropriate method for settling the dispute in the
circumstances of the case, taking into account, inter alia, the size of
the group;
(4) the interests of all
of the members of the group will be represented and managed in an appropriate
manner by the plaintiff; the defendant may not appeal or seek leave to appeal
against a decision in this regard.
(b) The court shall not
approve a representative action if it finds that it was submitted with lack of
good faith.
|
Court approval |
|
211. (a) Where the court approves the filing of an
action as a representative action, it shall define the group on behalf of which
the claim is filed and shall give instructions to the plaintiff as to the manner
in which its decision is to be made public.
(b) Any person included
in the group as defined by the court shall be considered to have agreed to have
been included in the group unless any such person notifies the court of his
desire not to be included in the group, within sixty days of the date of
publication of the decision of the court; the court may, on the application of
any person, extend the said period in respect of such person, if it is of the
opinion that there is a special reason for doing so.
|
Definition of group
|
|
212. A
judgment in a class action shall be res judicata in respect of
all members of the group, subject to the provisions of section 211.
|
Res judicata |
|
213. (a) A plaintiff shall not withdraw from a
representative action and shall not make an arrangement or compromise with a
defendant without the approval of the court.
(b) Where the court is
requested to approve an arrangement or compromise, it shall order the
publication of a notice setting out the details of the arrangement or
compromise; members of the group may file an objection to the approval of the
arrangement or compromise within the time set down for such by the court.
|
Arrangement or compromise
|
|
214. The court shall determine the fees of the advocate representing the
group; the advocate shall not receive fees greater than the sum
determined by the court.
|
Advocate’s fees |
|
215. Where the court rules in favor of the
plaintiff, it may order the payment of remuneration to him for his efforts in
filing and proving the claim.
|
Remuneration to plaintiff
|
|
216. (a) Where the court adjudicates on monetary
compensation in a class action, it may order that in addition to such
compensation, costs will be paid in a fixed sum to each of the members of the
group for their efforts in proving their right to relief.
(b) Where the court
adjudicates an inclusive sum as monetary compensation in the action, it may give
instructions regarding the use of the balance that would remain if any of the
members of the group had not made any effort to prove their right to relief.
|
Compensation and costs
|
|
217. Subject
to the provisions of section 212, the provisions of this Article shall
not preclude any other legal relief to the defendant.
|
Other relief |
|
218. (a) The
Minister shall prescribe rules of procedure regarding filing and
conducting a representative action, and regarding court fees.
(b) The Minister may make
provisions regarding methods of proving injury to each of the members of the
group.
|
Regulations |
