Shareholders with physical shares, no registered email ID can vote via remote e-voting: MCA

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April 14, 2020 11:52 AM

Members holding shares in physical form and who have not registered their mail ID with the company can cast votes through a remote e-voting system in the EGM.

EGM< extraordinary general meeting, e voting, video conferencing, MCA issues EGM guidelinesMCA said that the companies will have to announce through a public notice how the shareholders can take part and vote in the meeting. 

After the government allowed companies to hold various meetings through Video Conferencing (VC) or other audio visual means (OAVM), it has now allowed shareholders to cast their votes through remote e-voting systems. The Ministry of Corporate Affairs said that members holding shares in physical form and who have not registered their mail ID with the company can cast votes through a remote e-voting system in the Extraordinary General Meetings (EGM). In a circular, MCA said that the companies will have to announce through a public notice how the shareholders can take part and vote in the meeting. 

Prior to this, the MCA had earlier allowed the Board of directors to hold meetings through Video Conferencing (VC) or other audio visual means (OAVM) up to 30 June 2020. These meetings included those meetings too where the physical presence of directors were required. In order to ease compliance during the nationwide lockdown and to maintain social-distancing, the government also allowed the companies to hold Extraordinary General Meetings (EGMs) through VC or OAVM complemented with e-Voting facility or simplified voting through registered emails.

Also Read | Companies can survive coronavirus like calamities: Interim Management holds key

In the wake of an unprecedented situation caused by coronavirus scare, Finance Minister Nirmala Sitharaman announced a slew of measures to give relief to the companies. While providing ease in compliance, the measures included an extension in deadlines up to 30 June 2020.  In a major relief to the companies, especially small companies, the government raised the threshold limit to file any action under IBC from Rs 1 lakh to Rs 1 crore. This has come as a rescue to many MSME and small businesses that operate at the lower spectrum of the economic value chain and are endangered by the current lockdown.

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