Postal Ballot & its Procedure

POSTAL BALLOT :

An  election  where the voters caste their  vote through ballot papers by post.

(2) A vote made on an official form which is then sent through the post.

Mea

ns

OR

OBJECTIVE :

With an objective of larger shareholders participation in the decision making process of companies, Section 192A was inserted in the Companies Act, 1956 through the Companies (Amendment) Act, 2000. 

Defi niti on :

As per (Passing of the Resolution by Postal Ballot) Rules, 2001

"Postal  Ballot"  as  voting  by  shareholders  by  postal  or  electronic mode instead of voting personally by presenting for transacting businesses in a general meeting of the company. These provisions enable companies to transact any business through postal ballot/e-voting.

Applicable Laws :

1. The Companies Act 1956,

2. Passing of (resolution by postal ballot) rules 2011

Applicablity of Postal Ballot  

Applicable on Public Ltd. Company  listed  with Stock Exchange

Not Applicable on :1.) Unlisted Public Company2.) Private Limited Company

Cases Which Attracts Postal Ballot as per Companies Act 1956.

1. Alteration in the objects clause of

memorandum of association2. alteration of articles of association in

relation to insertion of provisions defining a private company;

3. buy-back of own shares by a company under section 77A;

4. issue of shares with differential voting rights under section 86(a)(ii);

5. change in place of registered office outside local limits of any city, town or village;

6. sale of whole or substantially the whole of undertaking of a company under section 293(l)(a);

7. giving loans or extending guarantee or providing security in excess of the limit prescribed under section 372A(l);

8. election of small shareholders' director under section 252(l) proviso;

9. variation in the rights attached to a class of shares or debentures or other securities as specified under section 106

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Postal Ballot process

PROCEDURE Conduct Meeting of Board of Directors

Pass Appropriate Resolution for :

Authorize Company Secretary along with a Functional Director for completion of process;

Appoint Scrutinizers ;

Approve Draft Notice Which is Send to Shareholders.

PROCEDURE Issue of Notice to Shareholders :

Notice of resolution be sent to all shareholders along with a draft resolution explaining reasons therefore and requesting them to send assent or dissent in writing on a postal ballot within 30 days of posting the letter.

Mode of dispatch of Notice :

OR

PROCEDURE

Along with 

PROCEDURE Notes in Notice :

Explanatory Notes should be Send along with Notice :

 For Better understanding of Shareholders

 For each Proposed Resoluation.

PROCEDURE Publication of Notice

In One Leading English Newspaper

In One Vernacular Newspaper

PROCEDURE Appointment of Scrutinizers

Board should appoint 1 scrutinizer.

Who is not employee of the Com.

SCRUTINIZERS Who can be a Scrutinizers ?

o A Retired Judge, or

o Any person of repute in Board opinion

o Generally A Practicing Company Secretary

SCRUTINIZERS Duration of office of Scrutinizers ?

35 Days From the Date of Issue of Notice for GM Excluding Holidays

SCRUTINIZERS Maintenance of record by scrutinizer

The  scrutinizer  shall  maintain  a  register (including  electronic  media)  to  record  the consent or otherwise received mentioning the particulars  of  name,  address,  folio  number, number  of  shares,  nominal  value  of  shares etc.  and  a  record  of  ballots  received  in defaced or mutilated form.

PROCEDURE Safe Custody of Ballots: 

The postal ballot and all other papers relating to it shall be under his safe custody till the chairman considers, approves and signs the minutes of the meeting.

VIIIV

PROCEDURE VOTING RIGHTS 

Proportionate to Shareholding

VIIIV

PROCEDURE Effect of non-receipt of assent or dissent.

If not received Within 30 days from the Date of issue of Notice

Shall be treated as if reply has not been received from the member.

PROCEDURE Submission of report by scrutinizer.

for ascertaining the requisite majority.

ASAP after the last date of receipt of postal ballots

shall be available at the registered office of the company.

PROCEDURE Declaration of results:

Chairman Declares

Results & Sign Minutes.