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Microlesson · 5-min read

Voting by Show of Hands (Section 107)

# Voting by Show of Hands [Section 107]

## Default Mode

Unless voting is demanded by poll or done by electronic means, voting at a general meeting is conducted in the first instance by show of hands.

## How It Works

  • Each member personally present raises his hand.
  • Proxies cannot vote on a show of hands (only on a poll).
  • One person = one vote (irrespective of shareholding).

## Conclusive Evidence Rule [Section 107(2)]

The Chairman's declaration of the result of a show of hands, coupled with an entry in the minutes book, is conclusive evidence that:

  • The resolution has been passed (or not passed), and
  • The exact number of votes is not required to be recorded.

Effect: Once entered in the minutes, the result cannot be challenged on the ground that the actual count was different — unless a poll was demanded and granted.

## When This Default is Displaced

  • If voting by electronic means applies under Section 108 (for certain companies);
  • If a poll is demanded under Section 109;
  • If business is being transacted through postal ballot under Section 110.

## Why This Mode Exists

  • Quick and inexpensive for uncontested resolutions.
  • Provides early signal of whether a contested resolution warrants the time/cost of a poll.

## Key Difference from Poll

FeatureShow of HandsPoll
Vote weightOne per memberProportional to shares
Proxy can vote?NoYes
Counts recordedNot necessarilyAlways
SpeedQuickSlower, formal

Worked example

### Example 1

Q: At ABC Ltd's AGM, a resolution is put to show of hands. 30 members raise hands 'for' and 20 'against'. The Chairman declares the resolution passed and the secretary records it in the minutes. A dissenting member later challenges, claiming the count was wrong. Can he succeed?

A: No. Section 107(2) makes the Chairman's declaration plus minutes-book entry conclusive evidence. Unless a poll had been demanded at the meeting itself, the result cannot be reopened by challenging the count later.

### Example 2

Q: Mr. X attends ABC Ltd's meeting as proxy for Mr. M, who holds 5,000 shares. A resolution is being voted by show of hands. Can Mr. X raise his hand?

A: No. A proxy has no right to vote on a show of hands. He can vote only if a poll is demanded.

⚠️ Common exam mistakes

  • Allowing proxies to vote on a show of hands — strictly barred.
  • Counting votes proportionate to shareholding on a show of hands — show of hands is strictly 'one member, one vote'.
  • Believing the chairman's declaration can be challenged on the ground of incorrect count — it is conclusive once minuted (unless a poll was demanded then and there).
  • Forgetting that show of hands is the default mode — electronic voting / poll / postal ballot displace it only when triggered.
Bare-Act text Section 107 · Companies Act, 2013 · click to expand
Section 107(1): At any general meeting, a resolution put to the vote of the meeting shall, unless a poll is demanded under section 109 or the voting is carried out electronically, be decided on a show of hands. Section 107(2): A declaration by the Chairman of the meeting of the passing of a resolution or otherwise by show of hands under sub-section (1) and an entry to that effect in the books containing the minutes of the meeting of a company shall be conclusive evidence of the fact of passing of such resolution or otherwise.
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