Bangladesh Securities and Exchange Commission (BSEC) has decided to make electronic voting (e-voting) system mandatory for shareholders of listed companies in the ‘Z’ category. However, e-voting has been made optional for other listed companies BSEC sources said.

The BSEC has taken this decision in its latest meeting with the aim of bring out problem ridden companies out from poor corporate governance.

Online e-voting system will be used to approve various agendas at the annual general meeting (AGM) and special general meeting (EGM) of the ‘Z’ category companies. Investors will be able to vote online on companies’ AGM and EGM related agendas. If an investor owns 100 shares of a company by the record date and before voting at the AGM, his 100 votes will be counted.

“Each company must upload an e-voting platform with an agenda on its website at least one week before the scheduled meeting,” a BSEC high official told Business Mirror preferring anonymity.

The BSEC thinks that if the e-voting system is implemented, the weaker companies in the ‘Z’ category will not be able to influence the AGM to pass the agenda in their favor. As a result, the directors of that company will not be able to hold the same position year after year. This will give the investors a chance to elect a good quality board of directors in that company.

A senior BSEC official, who did not want to be named, told Business Mirror that efforts were being made to digitize the capital market. The work of digitization has started since the new commission came. Several projects in this regard have already been undertaken. E-voting is one of them. In the first phase, we have decided to make shareholder meeting compulsory using e-voting system only for ‘Z’ category companies. This method will be made compulsory in other categories