Shareholders can now cast their votes online
The Economic Times, 18 Nov 2009
MUMBAI: Shareholders can now cast their votes on corporate proposals through the click of a mouse without having to worry whether their response has reached the company or not.
CDSL Ventures (CVL), a wholly-owned subsidiary of Central Depository Services (India), on Tuesday launched the e-voting system for listed companies. “This move will revolutionise the whole system,” Corporate Affairs minister Salman Khurshid said at the inaugural function.
The e-Voting system would permit a company or its registrar to set up the schedule on the e-voting website and upload the resolution and register of shareholders. CVL would then generate and print a password on a pin mailer for each shareholder, which would be communicated to them along with the notices of the resolutions. Shareholders can access the e-voting website and cast their votes at any time during the voting period at a place of their convenience.
“Companies would benefit from this system as the remote voting process would become quicker, accurate and would also result in savings on various cost overheads which are currently incurred for postal ballots,” said SS Thakur, chairman, CVL.
The proposed online voting system is aimed at enhancing corporate governance and increasing shareholder participation in listed companies, and is a common feature in advanced countries like the US, China, Japan and South Korea.
Mr Khurshid told reporters on the sidelines of the function that the proposed Company Bill, which is expected to be tabled before Parliament in the Budget session, will also have provisions for Class Action Suit
. Beginning this December, the ministry of corporate affairs will observe the third week of the month every year as “India Corporate Week”.
“We have decided to observe the third week of this December as India Corporate Week. I propose to announce next year as Investor Education Year and the thrust will be given to investor education and investor knowledge. The household savings of non-urban India should come to stock exchanges,” Mr Khurshid said
