The government has authorised the National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CDSL) to facilitate electronic voting by shareholders of companies. Keeping with its ”Green Initiative for Corporate Governance” campaign, the Ministry of Corporate Affairs (MCA) has appointed the two agencies for “capturing accurate electronic voting processes”.

“…for the above purpose, NSDL and CDSL are being approved subject to the condition that they obtain a certificate from Standardization Testing and Quality Certification Directorate,” the MCA said in a circular today.

Section 192A of the Companies Act, 1956, recognises voting by electronic mode for postal ballot.

Some listed companies already use electronic platform of certain agencies for providing and supervising the electronic platform for electronic voting.

As part of it initiative to facilitate paperless compliance, the MCA has made a number of announcements, which include allowing companies to send notices and documents to their shareholders and members.

It is also in line with the Information Technology Act, 2000,

which “permits service of documents, etc, in electronic mode”, the ministry has said.

While companies have been asked to maintain a data bank of email addresses of its members and shareholders, the ministry has also made it clear that companies will have to give them enough time to get their email ids registered. PTI RMI

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