Minority shareholders could take part in making important company decisions soon, according to market experts.
The recent defeat of Tata Motors’ resolution to approve a salary increase for its senior executive and the convenience of electronic voting could lead to greater investor participation in the future.
Electronic voting means that shareholders do not need to be present in different places for annual general meetings to cast their votes on various business resolutions that are part of the agenda.
In the Bajaj Auto General Shareholder Meeting on July 17, the company received 386 electronic ballots, which was significantly more than the 62 paper ballots received.
Aseem Dhru, the president of HDFC Securities, said: “E-voting is important to retail shareholders. Their voice needs to be heard and felt by the promoters as all decisions taken by the management may not necessarily be in the interest of all shareholders.”
Meanwhile, the product manager of ICICI Securities, Vishal Gulechha, commented: “Retail investors should cast their vote on important resolutions such as remuneration of key executives, buyback of shares, approval of accounts, granting of loans or extension of a guarantee in excess of prescribed limits.”
He pointed to a growing trend in electronic voting among investors.
