Need of Electronic- Voting (E-voting) in the Annual General Meeting (AGM)
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CS Executive – Need of Electronic- Voting (E-voting) in the Annual General Meeting (AGM)
Within 6 Months from the closure of Financial year, every Company is required to convene AGM by calling the Shareholders of the Company in order to transact the *Ordinary business and **Special business, if any.
It is impossible for the shareholders of the Company to be present physically for every general meeting, but it is their right to vote on each and every item which is required to be passed in the General Meeting
Thus, for the convenience of the Shareholders and in order to protect their rights, the Government has introduced a new concept under the Companies Act, 2013, i.e voting through electronic means under Section 108 read with Companies (Management and Administration) Rules, 2014 wherein shareholders can vote on the Ordinary or Special Business through electronically and they need not to come and attend the meeting physically.
Generally, e-Voting can be done in two ways–
- E-voting, which is physically supervised by Scrutinizer/ e- voting Agencies/ any third Part Agency who will provide the platform wherein Shareholder can login and done with their vote. (e.g. Electronic voting machines located at polling stations).
- Remote e-Voting where voting is performed within the voter’s sole influence, and is not physically supervised by representatives of governmental authorities (e.g. Voting from one’s personal computer, mobile phone, television via the internet).
Through the above e-voting systems, now shareholders can vote on the proposed items as per their convenience, which ensures the maximum participation by the shareholders without their physical presence at the venue fixed for the AGM or General Meeting which has been fixed by the Board of Directors.
In a nutshell, we can say that, now shareholders are the actual king of their own will at the time of giving the vote in AGM or any General Meeting.
*Ordinary Business: Adoption of Annual Accounts, Declaration of Dividend, Re-appointment of Director retiring by rotation, Appointment of Auditors and fixing their remuneration.
*Special Business- Each and every business, other than the ordinary business is called Special business.
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