Whistle Blower Mechanism under Companies Act, 2013

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This discussion explores whether the whistleblower mechanism under the Companies Act, 2013, extends protection to individuals outside the company, such as lawyers, media, or suppliers. While the Act primarily focuses on protecting directors and employees from victimisation, the question arises if external parties who report illegal activities are covered. The consensus suggests that since external whistleblowers are not subject to internal victimisation, the specific protections afforded to employees and directors may not directly apply to them.

ayushi lavania

ayushi lavania (Querist)

10 May 2022 Whether an outsider (not a former employee) (may or may not be a stakeholder) is covered under the Whistle Blower Mechanism under the Companies Act, 2013 ? If covered, whether he/she gets any protection just like the Directors and Employees of the company ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 May 2022 A whistle Blower may be outside the organization who discloses any illegal, immoral or illegitimate practices to the company.
He/She may be;
Lawyers
Media
Law enforcement
Watchdog agencies.
A Whistleblower could be a contractor, or a supplier who becomes aware of any illegal activities.

No victimisation possible for outsider hence no protection needed like employees and directors.

ayushi lavania

ayushi lavania (Querist)

11 May 2022 Thanks for the clarification, sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 May 2022 You are welcome............

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