Voting at AGMs to go electronic
Taking a giant step towards using technology to improve corporate governance practice in India, Minister for Corporate Affairs Salman Khurshid on Tuesday inaugurated the Central Depository Services Ltd’s (CDSL) e-voting platform for the corporate sector.business Updated: Nov 17, 2009 23:28 IST
Taking a giant step towards using technology to improve corporate governance practice in India, Minister for Corporate Affairs Salman Khurshid on Tuesday inaugurated the Central Depository Services Ltd’s (CDSL) e-voting platform for the corporate sector.
The platform allows shareholders to vote in favour or against the resolution passed by the company in their annual general meetings (AGMs) or extraordinary general meetings (EGMs). At present, voting is done through ballot or ‘paper’ and is quite expensive, cumbersome and time-consuming.
“E-voting would make it convenient, faster and less expensive for corporates to get shareholder approval,” said SS Thakur, chairman of CDSL.
At the event, BSE also launched ‘additional investor friendly service on its website, also inaugurate by the central minister.
“E-voting is a big step forward and towards use of technology in ensuring better corporate governance,” Khurshid said while inaugurating the e-voting website. “This is a part of new culture, a step towards attracting household saving of rural India to capital markets.”
Experts welcomed the move as likely to increase shareholder participation.
“It’s a very good move and we hope it would sooner be made mandatory so that companies are forced to participate. Many corporates do not want shareholder participation,” said Prithvi Haldea, CMD Prime Data Base.
Despite the prevailing postal ballot system, investors are not really keen on voting.
“Initially, the facility would be free for corportes,” said the CDSL spokesperson.