New Delhi: Capital market watchdog Sebi is looking into complaints pertaining to lapses by some listed companies in providing e-voting facility to shareholders.
In recent times, there have been instances where e-voting or electronic voting facility was not made available to shareholders.
Sources said that complaints have been received by the Securities and Exchange Board of India (Sebi) in this regard and the regulator is looking into them.
Listed entities are required to provide the option of e-voting to shareholders on all resolutions proposed to be passed at general meetings, according to Sebi norms that were issued last April.
Similar rules are also there in the Companies Act, 2013.
Generally, companies have been providing the e-voting option for annual general meetings. But there have been instances where the facility was not available for shareholders with respect to meetings convened to discuss amalgamation or similar schemes following court approval.
Proxy advisory firm Institutional Investor Advisory Services (IiAS) said it has come across some companies are not providing e-voting facility.
"We have noticed that e-voting is not being provided by some companies for resolutions presented through court- convened meetings. This is an issue of interpretation of law and the Ministry of Corporate Affairs/Sebi need to bring greater clarity on the matter," it said.
E-voting facility is seen as an option that enables all shareholders to voice their opinion.
Under the Companies Act, every listed entity or an entity having not less than 1,000 shareholders should provide its members with a facility to exercise their voting right at general meetings by way of electronic means (e-voting facility).
As per Sebi circular, issued in April 2014, companies are required to provide e-voting facility to its shareholders, in respect of all shareholders' resolutions, to be passed at general meetings or through postal ballot.
Such e-voting facility shall be kept open for such period specified under the Companies (Management and Administration) Rules, 2014 for shareholders to send their assent or dissent, it had said.
"The real implication of e-voting, though, is in the manner in which the votes are counted. E-voting counts one vote per share held, which dramatically changes the counting from the show-of-hands method (of counting one vote per hand).
"The vote of larger shareholders now counts, irrespective of their ability (or inability) to attend shareholder meetings," the proxy advisory firm said.
