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Corporate law- Voting and poll

Corporate law- Voting and poll
POPULAR METHODS OF VOTING
By show of hand
By poll
RULES REGARDING VOTING
Voting rights of equity shareholders
Voting rights of preference shareholders
RESTRICTION ON THE RIGHT OF AN EQUITY SHAREHOLDER TO VOTE
IN CASE OF A COMPANY HAVING SHARE CAPITAL
IN THE CASE OF ANY OTHER COMPANY

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Corporate law- Voting and poll

  1. 1. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 Affiliated Institution of G.G.S.IP.U, Delhi Corporate law(888207) Bcom(H) Sec. A 3rd Sem. First Shift Voting and Poll Jyoti Saini Assistant Professor
  2. 2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 VOTING AND POLL Whenever a matter is put before a meeting, unanimity on that matter may not be obtained. In such a circumstance, the Chairman may put the matter to vote in order to ascertain the wishes of the persons present at the meeting.
  3. 3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 POPULAR METHODS OF VOTING • By show of hand • By poll
  4. 4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 BY SHOW OF HANDS Section 107 provides that an any general meeting, voting in the first instance, is to be show of hands unless a poll is demanded under sec 109 or voting is carried on electronically. Under this method, every member has one vote and proxies are not allowed, unless expressly allowed by the articles of the company.
  5. 5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 BY POLL Under this method, each member has the right to vote according to the number of shares held by him i.e. one vote in respect of each share. Proxies are also allowed.
  6. 6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 RULES REGARDING VOTING • Voting rights of equity shareholders • Voting rights of preference shareholders
  7. 7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 VOTING RIGHTS OF EQUITY SHAREHOLDERS As per sec 47(1) of the companies act, every shareholder of equity shares has to vote on every resolution placed before the company. Sec 106 further provides that the right of an equity shareholder to vote cannot be prohibited on the ground that has not held his shares for any specified period before the meeting or any other ground.
  8. 8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 RESTRICTION ON THE RIGHT OF AN EQUITY SHAREHOLDER TO VOTE As per sec 106, a company however, through its articles, can restrict the right of an equity shareholder to vote, on the following grounds: i. Non- payment of calls by a member ii. Other sums personally payable by him not paid iii. Where the company has exercised the right of lien on his shares.
  9. 9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 VOTING RIGHTS OF PREFERNCE SHAREHOLDERS As per sec 47 (2) the preference shareholders have the right to vote only on the resolutions directly affecting them. Any resolution for winding up the company or for the repayment of reduction of its share capital shall be deemed directly to affect the rights attached to preference shares. But right of preference shareholders are not affected by the issue of additional ordinary shares, though their voting rights are thereby weakened.
  10. 10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 POLL As per sec 107, every resolution put to vote a general meeting, shall be decided by show of hands, unless a poll is demanded under sec 109. When a poll is demanded and ordered to be taken, the result of voting by show of hands stands negated or cancelled.
  11. 11. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 DEMAND FOR POLL As per sec 109, demand for poll can be made by the chairman either on his own motivation, or on a demand made to him by person or persons specified below: A. In case of a company having share capital B. In the case of any other company
  12. 12. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 IN CASE OF A COMPANY HAVING SHARE CAPITAL In case of a company having share capital, by any members present in person or by proxy and holding shares in the company: • Which confer a power to vote on the resolution not being less than 1/10th of the total voting power in respect of the resolution; or • On which an aggregate sum of not less than Rs. 500000 has been paid up.
  13. 13. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75 IN THE CASE OF ANY OTHER COMPANY In the case of any other company, by any member or members present in person or by proxy and having not less than 1/10th of the total voting power in respect of the resolution.
  14. 14. TRINITY INSTITUTE OF PROFESSIONAL STUDIES Sector – 9, Dwarka Institutional Area, New Delhi-75

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