MCA clarifies e-voting procedures for companies

The ministry of corporate affairs (MCA) has clarified the measures companies need to take to ensure that shareholders without a registered email are notified of any extraordinary general meetings (EGMs) and how they can participate in e-voting on resolutions.

In a circular released on Monday, the MCA said that companies that are required to provide e-voting facilities as per the Company Rules 2014, must provide members who hold shares in physical form or do not have a registered email with the company a way to register their email so as to cast their vote on resolutions.

For companies that are not required to provide e-voting facilities, the MCA clarified that they should communicate over telephone or other means with shareholders who do not have a registered email to notify them of any meetings or resolutions.

These companies would also be required to publish a notice regarding any meetings in both a vernacular newspaper in the area of their registered office and an english newspaper, both of which should have a digital publication as well. With regards to enabling remote e-voting for members, the ministry said companies must enable remote e-voting facility as postal ballots are no longer an option.