POSTAL BALLOT CONCEPT

Hello,

Section 192A of the Companies Act, provides a mechanism for passing of resolution by postal ballot instead of a general meeting. This provision will provide opportunity to such members who are not able to appoint proxy or not able to attend the general meetings personally. Therefore, it will give all the shareholders equal chance to give their opinion on proposals referred to them under the system.

Applicability of Postal Ballot

Presently the same is applicable to listed companies and the matters which will be decided by postal ballot has been prescribed by the Central Government by the Companies (Passing of the Resolution by Postal Ballot) Rules, 2001.

Please find attached herewith Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 for your reading.

Regards

Please read section 192A along with Companies (Passing of the Resolution by Postal Ballot) Rules, 2001, for better understanding.

Using postal ballot method is mandatory for all the 9 businesses mentioned in Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 for a listed company. For other business items use of PB is optional for a listed company.

For a non-listed company it is optional to use PB method for all businesses. I mean no compulsion at all for an unlisted company.

Please find attached herewith a sample Postal Ballot resolutions Notice.

Regards

Thanks Dear Ankur sir for all the timely help........

very helpful replies.....

Yes…a statutory meeting is held only once in the lifetime of a public co as desired by section 165. This section is applicable only on a public company.

In a meeting initially vote should be taken by show of hands. (section 177).

But if requisite number of members demanded poll in accordance with section 179 then it is mandatory for chairman to order poll.

Difference between show of hands and Poll

In show of hands only one vote is counted irrespective of number of share you are holding. For example if u r holding 90% shareholding, but still only one vote will be counted.

On the other hand in case of poll voting is based on value and not on number. In this case your 90% shareholding is enough to decide the resolution in your favour. Bcoz you have value in your hand.  100 shareholders holding 10% shareholding can not beat you in poll.

By this way polling can change the entire picture at a meeting.

Hope everything is clear now…

Regards

very very good explanation sir..........

now everything is cleared like a mirror...............

thanks very very much....................

Hi,

1. Is it possible for a private company to pass a resolution by voting through postal ballot

2. If so, then is it possible to pass such resolution only with the involvement of board of directors ? In other words, is it possible for the shareholders to initate this process without taking recourse to the board ?