Mohit Sharma (Student) (56 Points)
07 May 2020Hi. I wanted to understand the distinction between two voting methods: Voting by poll and voting by ballot (which includes postal ballot and voting by electronic means).
The book I referred to says that in voting by poll, every vote is given value as per the total number of shares held by the voter. Is it same in voting by ballot as well? If not, what is the difference between the two?
I am really confused. Please help me understand. Thanks.
1.
Harish choursiya
(Student cs professional )
(249 Points)
Replied 07 May 2020
Your question may be shorted out with the help of section 47(1)(b) of the Companies Act, 2013 which says about the voting Percentage to the proportion of paid up capital to overall paid capital of concern category or class as the case may be of the Company.
In addition to this the voting through polling paper is kind of immediate arrangement provided by the chairman /board at the meeting itself
In most of the Company this concept is rarely used even is very small size based company
In this technology evolution era most of the Company like listed company or mid size company they provide the postal ballot or remote e-voting facility to the members to ease member for participating in the voting process.
Hope so this add some clarity.
Mohit Sharma
(Student)
(56 Points)
Replied 07 May 2020
Hi Harish,
So, voting by poll signifies that your vote value is in proportion to your share in the share capital of the company. Is it same in voting by ballot?
For example, I hold 10% of equity share capital. So, if I vote by ballot, my vote will carry equal weightage to a person's vote whose holds 5% of equity share capital.
Also, in other voting methods like voting by division, show of hands, the value of the vote is as per proportion in total share capital or every vote carries equal weightage irrespective of total proportion in the share capital?
Thanks for replying.
Harish choursiya
(Student cs professional )
(249 Points)
Replied 07 May 2020
Dear sharma G
This is correct for voting% by poll and voting by ballot or e-voting seems to be same.
As per your example....
We can not consider everyone at equal footing who holds more or less share capital or voting rights
As per your understanding about the member who hold 10% paid up capital and another member hold 5% paid up share capital are same.
But these two different can not be analysis/view by a single binary or equal platform.
In the companies Act wherein various provision/situation are there for example for eligibility or seek to convene general meeting under section 100
Another provision of section 115 for special notice
Where certain condition needs to follow like having 1/10th voting right or not less than 5 lacs paid up share capital this is under section 100.
In show of hands here one members hold one share irrespective of% of share.
Mohit Sharma
(Student)
(56 Points)
Replied 10 May 2020
Hi Harish,
I still have a little bit of confusion. In voting by ballot and voting by poll, the vote value is proportionate to the share in the total share capital whereas in other methods like, voting by show of hands, every vote holds equal value.
So, the difference between ballot and poll, is convenience, since ballot helps members who are not present at the meeting.
Chirag
(Professional)
(1979 Points)
Replied 11 May 2020
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
