Financial Services Bill a missed opportunity
May 10 2010, 11:31 amThe main goals of the class actions mechanism are generally viewed as improving corporate governance and strengthening shareholder rights – in other words, encouraging corporate management to behave honestly and responsibly and provide a means of redress if this doesn’t happen.
It is therefore, disappointing that the proposed amends to the Financial Service Bill will be dropped as there evidently is a need for class actions to be included.
A number of European investors, including those in the UK, currently have no right to redress – in other words, no efficient way to bring a joint lawsuit – despite having suffered fraudulent or irresponsible corporate behaviour.
The need for an efficient reclamation system was highlighted by a recent report from the Civil Justice Council stating that there is an “unmet need” for better redress of common grievances which have allegedly given rise to monetary loss and damage to a class of claimants.
It is true that any amends merit detailed thought and a concise explanation of how the provisions work – but not to the point of atrophy. There are several successful and fair class action models around the globe adopted by legislatures other than the US such as in Australia, Canada and the Netherlands, on which this could be based.
Stephen Everad,
Managing Director,
Goal Group
