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Microlesson · 5-min read

Voting Through Electronic Means (E-Voting)

# Voting Through Electronic Means [Section 108]

## Companies Required to Provide E-Voting

The following must provide their members the facility to vote by electronic means:

1. Companies which have listed equity shares on a recognized stock exchange (RSE), OR

2. Companies with not less than 1,000 members.

### Important Carve-outs

  • Nidhi Companies — NOT required to provide e-voting facility.
  • A resolution proposed to be passed via e-voting CANNOT be withdrawn.
  • Companies covered under Sec. 108 may transact business that is otherwise mandatorily by postal ballot at a general meeting through the e-voting mechanism.

## Notice of Meeting

Notice must be sent to all members, auditors and directors by:

  • Registered post
  • Speed post
  • Courier, or
  • Electronic means

### Contents of the Notice

The notice must state:

TopicWhat must be stated
FacilityThat the company is providing voting by electronic means
MannerProcess and manner for voting by electronic means
At-meeting votingThat facility for voting at the meeting will also be made available for members who haven't cast votes via remote e-voting
TimingTime period during which votes may be cast by remote e-voting
AttendanceMembers who voted by remote e-voting may attend the meeting (but cannot appoint a proxy and cannot vote again) — they ARE counted for quorum
LoginLogin ID details and process for receiving password and casting vote

### Website Placement

Notice must also be placed on the websites of the company and the e-voting agency after sending to members.

## Advertisement of E-Voting

  • Published at least 21 days before the meeting in 1 English + 1 vernacular newspaper.
  • Must state all matters in the notice plus the following additional matters:
  • Cut-off date — within 7 days before the meeting — to determine members eligible to vote.
  • Statement that the person whose name appears in the register of members (or beneficial owner) as on the cut-off date can avail of both remote e-voting and voting at the general meeting.
  • Website of company and agency where notice is displayed.
  • Name, designation, address, e-mail ID and phone number of the grievance officer for e-voting.

## Key Memory Hook

"Listed equity OR 1,000+ members → must offer e-voting. Once a resolution is launched into e-voting, there's no take-back; once a member votes remotely, they can attend but not re-vote."

Worked example

### Example 1

Example: XYZ Ltd. is an unlisted public company with 1,250 members. It is calling its AGM on 30 June. By when must it publish the advertisement, and what is the latest possible cut-off date?

Answer:

  • Advertisement must be published at least 21 days before the meeting → on or before 9 June.
  • Cut-off date must be within 7 days before the meeting → cut-off can be any date from 23 June to 29 June (commonly fixed as 23 June).

### Example 2

Example: Mr. A casts his vote on a resolution via remote e-voting on 20 June. On the day of the meeting (30 June), he attends. Can he (a) appoint a proxy, (b) vote again at the meeting, (c) be counted for quorum?

Answer: (a) No, he cannot appoint a proxy. (b) No, he cannot vote again. (c) Yes, he is counted for quorum.

⚠️ Common exam mistakes

  • Assuming all listed companies must offer e-voting — only those with listed equity shares are covered. A company with only listed debt does not trigger Sec. 108.
  • Forgetting Nidhi Companies are exempt.
  • Thinking e-voting resolutions can be withdrawn like ordinary resolutions — they cannot, once launched.
  • Confusing the 21-day advertisement timeline with the 7-day cut-off window.
Reference: Section 108 (read with Rule 20 of Companies (Management & Administration) Rules, 2014) — Companies Act, 2013
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