Ever wondered how shareholders of a large listed company like Reliance Industries vote on resolutions without flying to Mumbai for every AGM? That's exactly what Section 108 enables — it gives the Central Government the power to mandate e-voting (electronic voting) for certain classes of companies, so every shareholder can exercise their right to vote digitally, from wherever they are.
In plain terms, Section 108 itself is an enabling section — it doesn't lay down the full procedure directly but authorises the Central Government to prescribe (a) which companies must offer e-voting and (b) the manner in which members can use it. The actual rules come from Rule 20 of the Companies (Management and Administration) Rules, 2014, which is where the exam-relevant detail lives. Under these rules, every listed company and every company with 1,000 or more shareholders is required to provide e-voting facility for all items of business at a general meeting. The voting window stays open for a minimum of 3 days and a maximum of 3 days before the meeting closes — typically from 9 AM to 5 PM on the last day.
Why does this matter practically? Think of Rajesh & Co. Pvt. Ltd., which just crossed 1,000 members after a fundraising round. It is now obligated to tie up with an authorised e-voting agency (like NSDL or CDSL) and send login credentials to every member with the meeting notice. A member who votes electronically cannot vote again at the physical meeting — one vote, one channel. The board appoints a scrutiniser (usually a Practising Company Secretary) to oversee the process and certify the results within 48 hours of the meeting. This section is the constitutional foundation for that entire machinery, and the exam loves testing it alongside Section 107 (show of hands) and Section 109 (poll).