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Sun Pharma In The News

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E-voting by shareholders kicks off with Sun Pharma

 

ELECTRONIC voting (e-voting) for shareholders in India got a shot in the arm after Central Depository Services (India) (CDSL) successfully implemented e-vot'ing facility for Sun Pharma shareholders.
 
Thus, Sun Pharma became the first company to use e-voting facility to seek shareholders' vote. The postal ballot seeking shareholders' nod for subdivision of Sun Pharma shares saw investors of 51 per cent of the total equity capital of the company cast their votes through the e-voting format. Market observers said they expect the trend to catch up with other listing companies fast. "At least 10 companies are in talks with CDSL for e-voting, while one more company is in high stage of preparedness for e-voting," a CDSL official said. The e-voting facil'ity for companies has been devel'oped by CDSLs wholly-owned subsidiary CDSL Ventures. The e-voting facility provides a more transparent way of en'abling investors to take part in the decision-making process of the company. Under e-voting, shareholders can cast their votes electronically through the internet on the e-voting site (http:-//wwwevotingindia.com) of CDSL Ventures.
 
There are several advantages of the e-voting facility. Besides improving transparency and corporate governance standards, it can help reduce the administrative cost associated with postal ballot. It will also facilitate declaration of results immediately af'ter the close of the voting. Investors can cast votes till the last day from the comfort of their home/office,  while eliminating the chances of their votes being declared invalid.
 
"All big companies are likely to adopt e-voting as it gives transparency to corporate governance. At present, CDSL Ventures is providing e-voting facility to companies free of cost," CDSL Ventures CEO, Cyrus Khambata, said.
 
"In future even company notices can go to shareholders electronically which will be a cost-saving exercise. Right now notices are sent physically. This will happen as and when the New Companies Act Amendment Bill is passed," Khambata said. Under e-voting, the company can define the voting period while the maximum allowed period is one month.
 
"It will take time, just the way it took time for dematerialisation of shares to become so popular," a CDSL official said while talking about e-voting as an alternative to physical voting for shareholders.
 
"Any voter having a demat account can vote on a resolution of the company through their demat accounts, when more companies go for the e-voting facility," the of'ficial said. The e-voting practice is popular among companies in South Korea, Japan, Australia and the US.