Thursday, July 19, 2012

Introduction of e-voting for passing specified resolutions


In the process of decision making process of incorporated companies in India, the year 2001 has seen a big change with introduction of section 192 A of Companies Act providing for postal ballot for some specified resolutions as the same turned around towards more democratic and more participation of shareholders.
Now it’s turn of e-voting, which will be compulsory for top 500 listed companies with effect from 01/10/2012. SEBI has issued circular no. CIR/CFD/DIL/6/2012 dated 13/07/ 2012 which provides for inclusion of clause 35B in listing agreement, requiring for listed companies to undertake for transacting specified business for postal ballots through e-voting also.

The e-voting facility will be an additional one and hence those shareholders who do not have access of this facility may continue to send their assent or dissent in writing through postal ballot.

For providing e-voting facility, said listed companies will have to hire services of agency having certification from Standardization Testing and Quality Certification (STQC) Directorate, Department of Information Technology, Ministry of Communication and IT, Government of India, New Delhi. At present only CDSL and NSDL has been given said certification for such services.

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