Query regarding voting methods in a meeting

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. 

 

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.

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. 

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.

For Private companies - By Show of Hands is feasible, But On Getting huge private equity investment, Polling will be conducted.

For Public companies having more than 200 Members, - Certain resolution to be passed through postal ballot ,For this companies having more than 1,000 members then Evoting.

For Listed companies - Every Resolution will be required Pre-Voting through Electronic means for effective participation by remote shareholders, called remote e-voting.

Any Other business can't be taken at General meeting, For inclusion of any resolution/ resolution requires special notice then give 6 weeks prior intimation to company for 160 at least 14 days prior notice.

Except valid poll demanded u/s 109 for removal of chairman and appoint another one or adjournment of meeting, All other valid polls will be conducted within 48 Hrs after conclusion of meeting.

Now, Voting Rights like 20% ,30% ,doesn't mean that if any sharehodler holding 30% Voting Rights( "VR") if he doesn't vote on any special resolution then It will not pass in General meeting, Because Voting depends on members present during meeting & voting or Total valid votes casted in Postal Ballot / Evoting.

Eg. ABC ltd has total paid up equity of Rs 10 Lacs divided into 1 Lacs EQ of Rs.10 .

During General Meeting, or At Evoting
Total Votes casted - 50,000 Shares
Total Valid Votes - 40,000 Shares
Invalid Votes - 10,000 Shares

Votes In Favour - 30,000Shares ( 3x of Votes against)
Votes Against - 10,000 Shares

Resolution is carried / Passed.

Thanks a lot Chirag!