Anisha Datta (155 Points)
28 March 2017
Jatin Bajaj
(CS)
(2930 Points)
Replied 29 March 2017
ACCORDING TO SECTION 163 OF THE COMPANIES ACT 2013 , A DIRECTOR MAY BE APPOINTED BY THE WAYS OF VOTING BY SHAREHOLDERS WHICH INCLUDE SINGLE TRANSFERABLE VOTE OR CUMULATIVE TRANSFREABLE VOTE.
HOWEVER IT IS NOT MANDATORY FOR THE COMPANY TO APPOINT THE DIRECTOR THROUGH THIS METHOD BUT IF COMPANY ADOPTS THIS METHOD THEN COMPANY HAS TO APPOINT MINIMUM 1/3RD OF DIRECTORS THROUGH THIS METHOD . THIS PROVISION IS EXERCISED ONCE IN A 3 YEAR. AND IF THERE IS ANY CONTRADICTION WITH ANOTHER SECTION , THE PROVISIONS OF THIS SECTION SHALL PREVAIL BECAUSE OF ITS OVERIDDING EFFECT.
UNDER SINGLE VOTING SYSTEM : SUPPOSE THERE ARE 4 POST OF DIRECTORS OUT OF 8 CANDIDATES , SHAREHOLDER CAN GIVE TOTAL ONLY 4 VOTE IRRESPECTIVE OF THE SAHRES HELD BY HIM OUT OF HIS PREFERNCE.
BUT UNDER CUMULATIVE VOTING METHOD , SUCH SHAREHOLDER CAN GIVE 4 VOTE TO A SINGLE PERSON OR IN RESPECT OF SHARES HELD BY HIM. SUPPOSE SUCH SHAREHOLDER HOLDS 100 SHARES , THEN HE IS ELIGIBLE TO GIVE 100*4= 400 VOTES IN TOTALITY.
Anisha Datta
(155 Points)
Replied 29 March 2017
suppose there are 5 candidates A B C D E shareholders have voted fr them election is in progress votes have been casted as per the result it has been noticed that there are 5000 shareholders and there are 5000 votes and it has been decided that any director who have more than 1000 votes will be elected and it will elect 3 directors. now after calculation of votes it has been found that A=500 B=1100 C=400 D=800 and E=800 VOTES have been received nw plz explain me the procedure of this election by single trransferrable vote as per sec 163 of companies act 2013
Anisha Datta
(155 Points)
Replied 29 March 2017
CAclubindia
