Everything Shareholders Need to Know Before Participating in E-AGM

Here’s how you can attend the AGM as a shareholder. Companies send out emails notifying shareholders at least 21 days before the meeting. The notice highlights the agenda of the meeting and the major decisions that require the approval of the shareholders. This can also be viewed on the company’s website along with the annual report.

On voting rights of small shareholders, Sriram Subramaniam, founder and MD of proxy advisory firm InGovern Research Services Pvt Ltd. “Voting may not have a major impact on decisions made by small retail shareholders, but it does send a signal to management that investors are proactive,” Ltd said.

In addition, the AGM notice gives shareholders a fair idea whether a resolution is good or bad for the company. Subramanian said, “For example, any offer of higher compensation to the management at a time when the company is crippled by COVID and is suffering losses is clearly not in its best interest.”

Retail investors can make use of reliable resources made available to them by proxy advisory firms if they are unable to decide to vote on a particular matter. Amit Tandon, Founder and MD, Institutional Investor Advisory Services Indian Limited (IIAS), said that all proxy-advisory companies make most corporate actions available to the public on their websites or social media platforms.

E-Voting Process

Shareholders can cast their vote on the proposals listed in the notice electronically before the AGM.

The e-voting platforms of NSDL and CDSL allow shareholders to register for e-voting and cast their votes on their website.

The only condition for them to be eligible for e-voting is that they are shareholders of the company as on the ‘record date’ fixed by the company. Those holding shares in physical mode are also entitled to e-vote. The Depository’s websites provide detailed instructions (including FAQs and User Manual) on the operational aspects of the e-voting process.

In case of joint shareholders, the e-vote can be cast by the first holder only, which will be recognized on behalf of all the joint holders. Also, since virtual meetings provide the facility to participate in the AGM from anywhere, the option of appointing a proxy to vote on behalf of the shareholder has not been enabled.

The vote once cast will be treated as final and cannot be modified as per the Companies (Management and Administration) Rules, 2014. Further, if you use the remote e-voting facility before the AGM, you will not be allowed to vote in the meeting. Again.

Sanket Jain, partner, Pioneer Legal, said, apart from voting, if the shareholders wish to ask questions or express any views during the e-AGM, “they have to register in advance as a speaker as per the information given in the notice.” is required.”

access to registers

At the physical AGM at the registered office, shareholders have access to a variety of documents, including minutes books, related-party transactions, contracts and arrangements in which directors are interested, and registers of members, directors and key managerial personnel.

Raj Bhalla, partner at law firm MV Kini, said, “Since companies are required to comply with all provisions relating to the conduct of AGMs, the rights to inspect the accounts or registers of members can also be exercised virtually. “

But Yashojit Mitra, Partner, Economic Law Practice, sought a separation and said that the company is not bound to provide these registers/documents to all the members at the e-AGM. “If the shareholder wishes to exercise such rights, they need to pursue the same independently with the company, which is not bound to furnish the same,” Mitra said.

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