The listed companies, have to elect small shareholders’ nominee through postal ballot

whereas unlisted companies may appoint such small

shareholders’ nominee if a majority of small shareholders recommend his candidature for the post of director in their meeting. The procedure for postal

ballot itself is very cumbersome for which a company has to follow new provisions introduced in Section 192A for passing of resolution by postal ballot.

3. In the Explanation to Section 192A it is stated that for the purpose of the said section, postal ballot includes voting by electronic mode. The term

‘electronic mode’ has a very wide connotation. Hence, it needs to be clearly specified as to what will be the instruments for the electronic mode. Whether

use of internet will be permissible to facilitate voting by electronic mode, needs to be specially clarified.