Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


The Role of Electronic Voting In the Management of the Joint-Stock Company (A Contrastive Study)

Author(s): Nawfal Rahman Mleghut, Kadhim Fakhri Ali

 Having the privilege to vote in the general assembly of the joint-stock company is very significant. It crucially and fundamentally determines the existence of the company. In most cases, this requires the attendance of most of the voting shareholders. However, what is actually happening is the problem of having the required quorum, especially after the spread of the Coronavirus epidemic, which makes it difficult for most shareholders to attend actual meetings. Consequently, it is necessary to find a way to balance between the continuation of the company's work and the general assembly’s actual meetings on the one hand, and avoiding the risk of spreading the epidemic among shareholders and encouraging them to engage in the general assembly’s actual meetings, on the other.

Therefore, some statutes approved the electronic voting as an ideal strategy to achieve this balance and make the General Assembly play its role before the Board of Directors. Adopting the electronic voting assures the participation of the largest number of shareholders due to its important advantages in this field. However, the adoption of this system requires special procedures and preparations that need to be set beforehand. Also, its adoption imposes on the company some additional obligations that the shareholders must abide by. In addition, there might be a conflict between the electronic voting and the in-person voting when they are combined. This would make the company liable for identifying and fixing this sort of conflict.

In this study, the researchers will attempt to explain the aforementioned issues meticulously, for the electronic voting serves as an effective method to be adopted in company management, especially during the current circumstances.

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