E-voting

EE-voh-ting

Voting by shareholders through electronic means — either at a general meeting through an electronic voting system or remotely through an internet-based platform — mandated by SEBI for all listed companies.

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Definition

Electronic Voting Remote E-voting Online Shareholder Voting

Voting by shareholders through electronic means — either at a general meeting through an electronic voting system or remotely through an internet-based platform — mandated by SEBI for all listed companies.

E-voting has become the dominant mode of shareholder voting in India, particularly for listed companies. SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015 (Regulation 44) mandates that all listed companies provide e-voting facility for all resolutions placed before shareholders — at general meetings AND through postal ballot. The major e-voting service providers are NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). Companies must also allow electronic voting at physical meetings through polling devices. The e-voting window typically opens 3 days before the meeting and closes on the day before.

Statutory Definition

Rule 20, Companies (Management and Administration) Rules, 2014: 'Every listed company or a company having not less than one thousand shareholders, shall provide to its members facility to exercise their right to vote at general meetings by electronic means.' Regulation 44(1), SEBI LODR Regulations, 2015: 'The top 100 listed entities by market capitalisation... shall provide one-way live webcast of the proceedings of the annual general meeting. The listed entity shall also provide the facility to exercise votes to the shareholders of all general meetings through electronic voting system from a date one day prior to the date of the general meeting to the conclusion of the general meeting.'

Etymology & Origin

From 'e-' (electronic, abbreviation from 'electronic') + 'voting' (from 'vote' — from Latin 'votum' — a vow, a wish, a vote). E-voting is electronic voting — casting votes through digital rather than physical means.

Full Legal Analysis

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