Financial statements along with Board’s reports, Auditor’s reports and other documents are required to be sent only through email to members ,trustees for the debenture-holder of any debentures issued by the company and all other entitled persons.

Companies required to provide e-voting facility

In addition to the requirements mentioned above, a company which is required to provide e-voting facility, shall, prior to sending the financial statements and other documents by email, issue a public notice by way of an advertisement in newspapers (in principal vernacular language and English language) circulated in the district in which their registered offices are situated, containing information of date and time of the meeting through VC/OAVM, the manner of casting votes, manner in which email addresses may be registered with the company etc.

Where such a company has received permission from the relevant authorities to hold an AGM at its registered office, it should also provide VC/OAVM facility to allow members other than those who can be physically present to participate. Participation through both means shall be counted towards quorum under section 103 of the CA 2013. All resolutions shall continue to be passed by e-voting.

In case the company is unable to pay the dividend to any shareholder by the electronic mode due to non-availability of the details of the bank account, the company shall, upon normalization of the postal services, dispatch the dividend warrant cheque to such shareholder by post.

Companies not required to provide e-voting facility

Companies which are not required to provide e-voting facility under the Act may hold AGMs through VC/OAVM only if they have on their records the email addresses of half of the total number of members who; (i) in case of a Nidhi company, hold shares of more than One Thousand Rupees in face value or more than 1% of the total paid-up share capital, whichever is less; (ii) in case of other companies having share capital, represent at least 75% of such part of the total paid-up share capital as gives a right to vote at the meeting; and (iii) in companies not having share capital, who have the right to exercise not less than 75% of the total voting power exercisable in the meeting.

Such companies should provide a window to the shareholders for registering their mandate for transferring dividends electronically through ECS or any other means.

To refer to the MCA circular dated 5 May 2020, click here.

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