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Microlesson · 5-min read

Demand for Poll [Section 109]

# Demand for Poll [Section 109]

## What is a Poll?

A poll is a method of voting where each member's voting power is counted on the basis of the number of shares held (or voting rights) — unlike voting by show of hands, where each member has only one vote.

A poll may be ordered by the Chairman of the meeting:

  • On his own motion, OR
  • On a demand by specified members

This demand can be made before or on the declaration of result of voting by show of hands.

## Who Can Demand a Poll?

### Company having share capital:

Members present in person or by proxy (where allowed), holding:

  • Not less than 1/10th of the total voting power, OR
  • Shares on which aggregate paid-up amount is at least ₹5,00,000 (or higher amount as prescribed)

### Any other company (without share capital):

Members present in person or proxy holding:

  • Not less than 1/10th of the total voting power

> Key word: "OR" — the member needs to satisfy any one of the two thresholds (in the case of share capital companies).

## Withdrawal of Demand

The demand for a poll may be withdrawn at any time by the persons who made the demand.

## Timing of Taking the Poll

Type of QuestionWhen Poll is Taken
Adjournment of meetingForthwith (immediately)
Appointment of ChairmanForthwith (immediately)
Any other questionAt such time as the Chairman directs, but not later than 48 hours from the time of demand

## Appointment of Scrutinizers

Where a poll is to be taken, the Chairman appoints sufficient number of scrutinizers to:

  • Scrutinize the poll process
  • Examine votes cast on poll
  • Submit a report thereon

## Duties of Scrutinizer

1. Ensure proper conduct of polling process

2. Maintain proper records of the poll

3. Submit a report to the Chairman (containing details of votes for and against the resolution)

4. Ensure compliance with Section 109 and Rule 21

## Procedure under Rule 21 — Chairman's Duties

The Chairman must ensure that scrutinizers are provided with:

  • Register of Members
  • Specimen signatures of members
  • Attendance Register
  • Register of Proxies
  • All documents received under Sections 105, 112 and 113

### Scrutinizer's Detailed Process under Rule 21(1):

StepAction
1Arrange and distribute polling papers (Form MGT-12)
2For joint shareholders → polling paper to the first-named holder; in his absence to next joint holder in chronological order
3Keep record of polling papers received by initialling them
4Lock and seal an empty polling box in presence of members/proxies
5Open the polling box in presence of two witnesses after voting is over
6Decide ambiguity about validity of proxy in consultation with Chairman
7If a member who appointed a proxy has voted in person → proxy's vote disregarded
8Count votes and prepare report addressed to Chairman
9If voting is electronic under Section 108 → company provides necessary technical support

### Scrutinizer's Report — Must State:

  • Total votes cast
  • Valid votes
  • Votes in favour of resolution
  • Votes against resolution
  • Details of invalid polling papers and votes therein

### Final Steps:

  • Scrutinizer submits report → Chairman countersigns
  • Chairman declares the result (may announce personally or through an authorised person)
  • Report in Form MGT-13 to be submitted within 7 days from date of poll [Rule 21(2)]

## Special Provision: Applicability to Private Companies

Sections 101 to 107 and 109 apply to private companies unless otherwise specified in the respective sections OR the articles of the company provide otherwise.

> Condition: This exception is available only to a private company which has NOT committed default in filing:

> - Financial statements under Section 137, OR

> - Annual return under Section 92

## Summary Chart

```

Voting by Show of Hands → Result declared

Demand for Poll (by qualified members) OR Chairman's motion

┌──────────┴──────────┐

Adjournment/ Other

Chairman appointment questions

↓ ↓

Forthwith Within 48 hours

Scrutinizers appointed by Chairman

Polling Paper (MGT-12) → Voting → Report (MGT-13)

Result declared by Chairman

```

Worked example

### Example 1

Example 1: Eligibility to Demand Poll

XYZ Ltd. has a paid-up share capital of ₹1 crore divided into 10,00,000 shares of ₹10 each. At an EGM, Mr. P (holding 50,000 shares) alone demands a poll on a resolution. Is the demand valid?

Answer: Mr. P holds 50,000 shares × ₹10 = ₹5,00,000 paid-up. He satisfies the ₹5,00,000 paid-up share capital criterion under Section 109. Yes, his demand for poll is valid, even though his voting power (5%) is less than 1/10th of total.

### Example 2

Example 2: Timing of Poll

At the AGM of ABC Ltd. held on 30th June at 10:00 AM, a poll is demanded on a resolution for appointment of director. Until when must the poll be taken?

Answer: Since the question is other than adjournment or Chairman's appointment, the poll must be taken at such time as the Chairman directs, but not later than 48 hours from the time of demand — i.e., by 30th June, 10:00 AM + 48 hours = by 2nd July, 10:00 AM.

### Example 3

Example 3: Proxy and Personal Vote

Mr. Q appointed Mr. R as his proxy. At the meeting, Mr. Q attended personally and voted in the poll. Mr. R also voted using the proxy. Which vote stands?

Answer: Under Rule 21(1), if a member who has appointed a proxy has voted in person, the proxy's vote shall be disregarded. Therefore, Mr. Q's personal vote stands; Mr. R's proxy vote is invalid.

⚠️ Common exam mistakes

  • Believing the threshold for demanding a poll is 1/10th paid-up capital — it is 1/10th of TOTAL VOTING POWER, or alternatively ₹5,00,000 paid-up.
  • Confusing Form MGT-12 (polling paper) with Form MGT-13 (scrutinizer's report).
  • Stating poll on any matter must be taken forthwith — only poll on adjournment or appointment of Chairman is taken forthwith; for others, within 48 hours.
  • Forgetting that the demand for poll can be WITHDRAWN at any time by those who made it.
  • Assuming the scrutinizer alone declares the result; it is the CHAIRMAN who declares the result after counter-signing the report.
  • Overlooking that the private company exemption to Sections 101–107 and 109 applies only if the company has NOT defaulted in Section 137 or Section 92 filings.
  • Forgetting that the polling box must be opened in presence of TWO witnesses after voting.
Bare-Act text Section 109 read with Rule 21 · Companies Act, 2013 · click to expand
Section 109(1): Before or on the declaration of the result of the voting on any resolution on show of hands, a poll may be ordered to be taken by the Chairman of the meeting on his own motion, and shall be ordered to be taken by him on a demand made in that behalf,— (a) in the case of a company having a share capital, by the members present in person or by proxy, where allowed, and having not less than one-tenth of the total voting power or holding shares on which an aggregate sum of not less than five lakh rupees or such higher amount as may be prescribed has been paid-up; and (b) in the case of any other company, by any member or members present in person or by proxy, where allowed, and having not less than one-tenth of the total voting power.
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