Government streamlines e-voting norms for companies1 min read . Updated: 13 Apr 2020, 11:03 PM IST
The clarifications from Ministry of Corporate Affairs will ensure that companies facilitate registration of email addresses of their shareholders
New Delhi: The government on Monday issued a set of clarifications to make it easier for various classes of companies to seek shareholder approval for decisions by streamlining the rules related to electronic voting.
The Ministry of Corporate Affairs said in a statement that the clarifications allow companies, which are required to offer e-voting facility to shareholders to also intimate them about general meetings by way of an e-mail rather than by post.
The clarifications seek to provide greater clarity regarding issue of notices to members for meetings by using only electronic means, in view of the coronavirus crisis related lockdown and social distancing requirements, the ministry said. The clarifications also will ensure that companies facilitate registration of email addresses of their shareholders.
Companies also have to issue a public notice to specify the manner in which shareholders who are holding shares in physical form or who have not registered their email addresses with the company can cast their vote through e-voting.
The clarifications also allow companies which usually transact businesses through postal ballot without convening a general meeting to also employ e-voting by shareholders.
“The above clarifications are expected to greatly facilitate the conduct of business by companies during these extraordinary times," the ministry said.