: MCA allows shareholders to vote through evoting system during EGM through Video Conferencing; applicable for smaller cos too #FinanceIndia #StockMarketNEWS MCA allows shareholders to vote through e-voting

@StockMarketNEWS Wed 15 Apr, 2020

Posted in: #FinanceIndia #StockMarketNEWS

MCA allows shareholders to vote through evoting system during EGM through Video Conferencing; applicable for smaller cos too #FinanceIndia #StockMarketNEWS
MCA allows shareholders to vote through e-voting system during EGM through Video Conferencing; applicable for smaller cos too New Delhi, Apr 14 (KNN) The Ministry of Corporate Affairs (MCA) has said that the members can who are holding shares in physical form or who have not registered their email addresses with the company can cast their vote through remote e-voting or through the e-voting system during the meeting. The move aims at ensuring social distancing norm during lockdown amid Covid-19 outbreak.

“The public notice to be issued by relevant companies would also be required to specify the manner in which members who are holding shares in physical form or who have not registered their email addresses with the company can cast their vote through remote e-voting or through the e-voting system during the meeting,” said MCA.

A similar framework for smaller companies i.e. companies which are not required to provide e-voting facility to their members has also been specified in the Circular.

This procedure is being allowed on account of disruption caused in postal services, whereby it has become difficult to serve or receive notices by post.

On April 8, 2020 MCA had allowed to conduct extraordinary general meetings (EGMs) through video conferencing (VC) or other audio visual means (OAVM).

The Circular also provides that where certain companies intend to transact a business only through postal ballot (without convening a general meeting) in accordance with the applicable provisions of the Companies Act, 2013/rules made thereunder, then in such case, the relevant provisions of the Companies (Management and Administration) Rules, 2014 with regard to voting by electronic means and the framework provided for e-voting in the present Circular and earlier Circular dated April 8, 2020 issued by MCA would be applicable mutatis mutandis.

MCA said the clarifications are expected to greatly facilitate the conduct of business by companies during these extraordinary times. (KNN Bureau)

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