Shareholder E-Voting Requirements Deferred

India is one of the forerunners in mandating e-voting
by shareholders. It was first introduced
for top listed companies, and then codified in the Companies Act,
2013 (section 108). However, due to operational difficulties and delays, the
MCA last week issued a clarification
postponing the mandatory nature of the e-voting requirements. It has also
clarified certain operational matters regarding the provisions of the Act as
well as the Companies (Management and Administration) Rules, 2014. For further discussion,
see here
and here.

The matter of postal ballot (which covers e-voting)
has already captured the attention of the judiciary as discussed here,
where it was conferred a great deal of sanctity.

However, it is not clear as to whether SEBI has deferred (or will defer) the requirements under the listing agreement (clause 35B), which would be applicable to public listed companies.

About the author

Umakanth Varottil

Umakanth Varottil is an Associate Professor at the Faculty of Law, National University of Singapore. He specializes in corporate law and governance, mergers and acquisitions and cross-border investments. Prior to his foray into academia, Umakanth was a partner at a pre-eminent law firm in India.

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