Section 108 of the Companies Act, 2013
Section 108 of the Companies Act, 2013 deals with the voting through electronic means by members of a company.
📜 Section 108 – Voting Through Electronic Means
Provision:
Section 108 mandates that the Central Government may prescribe the class or classes of companies that shall provide to their members the facility to exercise their right to vote by electronic means (e-voting).
This section empowers members to cast their votes on resolutions electronically without being physically present at the meeting.
🔧 Key Features:
Applicability:
The provision applies to certain classes of companies, especially listed companies and companies with a certain threshold of shareholders.
Rule 20 of Companies (Management and Administration) Rules, 2014:
This rule elaborates the procedure for e-voting:
Companies must send a notice to all shareholders.
E-voting must remain open for at least 3 days.
The facility must be provided at least once for each general meeting.
Voting results must be declared and posted on the company website and stock exchange (if applicable).
Scrutinizer’s Report:
The results of the e-voting are to be scrutinized by an independent professional, such as a practicing CA, CS, or advocate.
✅ Companies Required to Use E-voting (as per MCA):
As per MCA notifications and rules:
All listed companies, and
Companies having 1,000 or more members,
are required to provide e-voting facility.
🔄 Objective:
To increase transparency, participation, and corporate governance in the decision-making process by allowing members to vote remotely.
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