INTRODUCTION- E- VOTING
- It has mandated e-voting, wherein a shareholder can vote on the resolutions of a meeting without even being present at the general meeting, from a remote location.
- “Electronic voting system” means a secured system based process of display of electronic ballots, recording of votes of the members and the number of votes polled in favour or against, in such a manner.‘secured system’’ means computer hardware, software, and procedure that
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- Are reasonably secure from unauthorized access and misuse;
- Provide a reasonable level of reliability and correct operation;
- Are reasonably suited to performing the intended functions; and
- Adhere to generally accepted security procedures.
- “Remote e-voting” means the facility of casting votes by a member using an electronic voting system from a place other than venue of a general meeting.
- Voting by electronic means is a facility given to the members of a company to cast their votes on the resolutions through electronic mode.
APPLICABILITY OF E-VOTING
APPLICABILITY OF E-VOTING – Exemptions
CONCEPT OF E- VOTING
Types Of E-Voting
In 21st century many different types of E-Voting System have evolved: They are as follows
- Punch-card voting systems
- Optical scan (voting) systems
- Voter-verified paper audit trail
- New Voting Technology
- Paper-based electronic voting system
- Direct-recording electronic (DRE) voting system
- Public network DRE voting system
Procedure of E- Voting
1. APPOINTMENT OF E-VOTING AGENCY
- The company desiring to offer e-voting facility to its members first takes e-voting platform of any one of the e-voting service providers
2. APPOINTMENT OF SCRUTINIZER
- The Board of directors shall appoint one scrutinizer, who may be chartered Accountant in practice, Cost Accountant in practice, or Company Secretary in practice or an advocate,
- But not in employment of the company and is a person of repute who, in the opinion of the Board can scrutinize the e-voting process in a fair and transparent manner:
- The scrutinizer so appointed may take assistance of a person who is not in employment of the company and who is well-versed with the e-voting system.
- The scrutinizer shall be willing to be appointed and be available for the purpose of ascertaining the requisite majority
3. DISPATCH NOTICE TO SHAREHOLDERS
A notice shall be sent to all members, auditors of the company or directors, through; –
- Registered Post or Speed Post
- Courier services
- Electronic mean i.e. registered e-mail ids
- The notice shall also be placed on the website of the company and website of the agency.
- The notice of the meeting shall clearly mention that the business may be transacted through electronic voting system and the company is providing facility for voting by electronic means.
- The notice shall clearly indicate the process and manner for voting by electronic means and the time schedule including the time period during which the votes may be cast and
- Shall also provide the login ID and create a facility for generating password and for keeping security and casting of vote in a secure manner.
4. ADVERTISEMENT IN NEWSPAPERS
- Not less than 5 days before the date of beginning of the voting period an advertisement is to be published.
The advertisement must specify the following matters;
- Statement that the business may be transacted by electronic voting;
- The date of completion of sending of notices;
- The date and time of commencement of voting through electronic means;
- The date and time of end of voting through electronic means
- The statement that voting shall not be allowed beyond the said date and time
- Website address of the company and agency, if any, where notice of the meeting is displayed and
- Contact details of the person responsible to address the grievances connected with the electronic voting
5. VOTING
- The e-voting shall remain open for not less than one day and not more than three days. Provided that in all such cases, such voting period shall be completed three days prior to the date of the general meeting.
- During the e-voting period, shareholders of the company, holding shares either in physical form or in dematerialized form, as on the record date, may cast their vote electronically.
- Once the vote on a resolution is cast by the shareholder, he shall not be allowed to change it subsequently.
- At the end of the voting period, the portal where votes are cast shall forthwith be blocked
6. SCRUTINIZER’S REPORT
- The scrutinizer shall, within a period of not exceeding three working days from the date of conclusion of e-voting period,
- unblock the votes in the presence of at least two witnesses not in the employment of the company and make a scrutinizer’s report of the votes cast in favour or against, if any, forthwith to the Chairman.
- The scrutinizer shall maintain a register either manually or electronically to record the assent or dissent, received, mentioning the particulars of name, address, folio number or client ID of the shareholders, number of shares held by them, nominal value of such shares and whether the shares have differential voting rights.
- The register and all other papers relating to electronic voting shall remain in the safe custody of the scrutinizer until the chairman considers, approves and signs the minutes and thereafter,
- The scrutinizer shall return the register and other related papers to the company.
7. DECLARATION OF RESULTS
- The results declared along with the scrutinizer’s report shall be placed on the website of the company .
- Within two days of passing of the resolution at the relevant general meeting of members. Subject to receipt of sufficient votes.
- The resolution shall be deemed to be passed on the date of the relevant general meeting of members.
Advantages of E-Voting
| Advantages of E-Voting to Company | Advantages of E-Voting to Shareholders |
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Process involved in e- voting
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