e-Voting Revolution-In Pusuit of better Corporate Governance

Abstract

e-Voting is an internet based system through which shareholders can login and register their votes on company resolutions. The system would process and record votes automatically and facilitate declaration of voting results quickly. It is believed that e-Voting system would be relatively more efficient, convenient and cost effective. The Companies (Passing of the Resolution by Postal Ballot) Rules, 2001 issued by Central Government under Section 642 of the Companies Act, 1956, includes electronic voting. The e-Voting system would permit a company or its registrar to set up the schedule on the e-voting website and upload the resolution and register of shareholders. The online voting system is aimed at enhancing corporate governance and increasing shareholder participation in listed companies, and is a common feature in advanced countries. However, all the advantages are futile if they can be abused and the election results can be manipulated. e-Voting in India must be accompanied by proper plan and adequate information and communication technology infrastructure. At the same time special emphasis must be given to the cyber security aspect of e-voting mechanism in India.