India is one of the forerunners in mandating e-voting
by shareholders. It was first introduced
by SEBI 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.
by shareholders. It was first introduced
by SEBI 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.
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.
Though SEBI has not issued any clarification, BSE has issued a circular to listed companies on 18 June 2014 which is available at – http://www.bseindia.com/corporates/Displaydata.aspx?Id=5a647f39-0bb4-4f82-98d8-7c50a3d1ef2a&Page=cir
The BSE circular effectively postpones the requirement of E-Voting by drawing attention to the MCA circular.
Surprisingly, NSE has so far, not issued any circular on the lines of BSE circular dated 18 June 2014.
Kind regards,
Yogesh Chande