PQR Ltd. is an unlisted company and has 400 shareholders in all. The shareholders of the company propose voting by electronic mode. Chairman of the company rejected the shareholders' proposal. Explaining the provisions o

In accordance with the provisions of the Companies Act, 2013, as contained in Section 108, and Rule 20 of Companies (Management & Administration) Rules, 2014, every listed company or a company having one thousand or more shareholders may provide to its members facility to exercise their right to vote at general meetings by electronic means. A member may exercise his right to vote at any general meeting by electronic means and company may pass any resolution by electronic voting system. Applying, the above provisions in the given case, it can be concluded that since the company is having only 400 shareholders i.e. less than the required number of shareholders, it is not mandatory to hold electronic voting. Moreover, the company is an unlisted company therefore, electronic voting is not mandatory for unlisted company. Therefore, Chairperson's rejection of the shareholders' proposal to allow electronic voting is valid.