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Microlesson · 5-min read

Postal Ballot — Scrutinizer's Role

# Scrutinizer for Postal Ballot

## Who appoints the Scrutinizer?

The Board of Directors (BOD) appoints a scrutinizer. The scrutinizer must not be an employee of the company — this ensures independence.

## Custody of Ballots

  • Postal ballots received from shareholders are kept in the custody of the scrutinizer until the chairman signs the minutes.
  • Once minutes are signed, the scrutinizer returns the papers and register to the company, which preserves them.

## Register Maintained by Scrutinizer

The scrutinizer maintains a register recording, for each ballot:

  • Name of shareholder
  • Assent / Dissent
  • Number of shares held
  • Nominal value of shares
  • Whether shares carry differential voting rights
  • Details of defaced postal ballots received
  • Details of invalid postal ballots

## Confidentiality Rules

  • No person may deface or destroy a received ballot paper.
  • No person may declare the identity of a shareholder.

## Scrutinizer's Report

  • Submitted within 7 days from the last date of receipt of postal ballots.
  • Results are declared by placing them, along with the scrutinizer's report, on the company's website.
  • If the resolution is assented to by the required majority, it is deemed as passed at a general meeting.

## Special Rule on Voting

A member is NOT required to use all his votes in the same way when voting through postal ballot. He can split his votes between assent and dissent if he wishes.

## Key Memory Hook

"The scrutinizer is an outsider with full custody, full disclosure of vote-counts, but bound to keep voter identity secret — a referee, not a participant."

Worked example

### Example 1

Example: Mr. X holds 1,000 shares in ABC Ltd. The company is conducting a postal ballot on issue of shares with differential rights. Can Mr. X cast 600 votes in favour and 400 against?

Answer: Yes. The rule explicitly permits that a member need not use all his votes in the same way when voting through postal ballot. He may split his 1,000 votes between assent and dissent as he chooses.

⚠️ Common exam mistakes

  • Thinking an employee of the company can be appointed as scrutinizer — the law specifically excludes employees.
  • Confusing the 7-day timeline — it is from the last date of receipt of ballots, not from the date of voting commencement.
  • Assuming a member must vote ALL his shares in the same direction — split voting is allowed in postal ballot.
Reference: Section 110 (read with Rule 22 of Companies (Management & Administration) Rules, 2014) — Companies Act, 2013
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