To infuse the more participation of shareholders in the decision making process, e-voting system has also been annexed to the companies shareholder meeting.
What we have been observing till commencing the new companies act, 2013 is that shareholders hardly used to come at the General Meeting of the company due to remoteness of the place of the meeting. In this way, shareholders who had majority stake in the companies usually have a say in the decision making process and interest of the minority shareholders had been set aside. Therefore, this e-voting system has been introduced in corporate decision making process.
Also Read: Dormant Status of a Company
E-voting system is not applicable on all the companies. This is a little cumbersome process and expensive as well for small companies. Therefore, only following class of companies are required to follow e-voting system:
This e-voting facility must be communicated by the companies in the notice of annual general meeting (AGM) itself. Notice of AGM shall be sent before 21 days of the meeting, so you have arrange this e voting facility before sending the notice because this notice contains the details about the e-voting and how to use this facility.
The notice of the meeting shall state that:
Public Notice by way of an advertisement:
Content of the advertisement must state:
After observing the law behind the e-voting, one thing that is clear that now voting system in the Public Limited company more align to democratic manner and convenient for shareholders to vote remotely.