Dead man votes in LSE elections
Eyebrows raised even as the ‘fraud’ did not make any difference to the result
In a revelation of sorts, it has come to the fore that in the recently held elections for Ludhiana Stock Exchange (LSE) Securities Limited and Ludhiana Stock Exchange (LSE), proxy votes were cast on the behalf of the dead.
The records of votes cast in the elections for two member directors of LSE Securities Limited on September 15 at Chandigarh show that Chand Kishan Hazari from New Delhi was enrolled as a voter.
However, one Jaspal Singh, a member of LSE Securities Company, cast his proxy vote. Interestingly, Hazari had passed away on May 1, 2012 and obituaries of his death had appeared in the papers.
“Similarly, in the elections of two member directors of LSE held on September 18 in Ludhiana, the proxy vote of Hazari was cast by a person who also is a member of same company,” reveals the records of votes cast.
The deceased owned 10, 000 shares in the LSE Securities Limited.
“The notice for holding the 13th annual general body meeting of LSE Securities Limited and for conducting elections was issued on August 14, three and half months after the death of Hazari. An application for proxy vote right to Jaspal Singh was moved on September 12, three days before the poll date,” sources said.
Sources said that though the bogus vote had no impact on poll outcomes, but it exposed flaws in the overall functioning of the stock exchange. Authorities in both the companies evaded queries.
Former chairman of LSE Securities Limited, Vinod Gumbar, who relinquished the post in the annual general body meeting on September said: “I am no longer the chairman and not in a position to comment on the issue. The matter could be taken up in the meeting of board of directors only.”
When contacted, executive director, LSE, Pooja M Kohli, who also happens to be member director, LSE Securities Limited , said she was not authorized to talk on any issue to the media and only the chairman, whose post was lying vacant, would be in a position to comment on both the issues.
Meanwhile, Jaspal Singh when contacted over phone, initially feigned ignorance and said that he had received rights to caste proxy votes for number of persons and does not remember if he had voted for the deceased person.
However, when quizzed further he claimed that family members, who are also nominees of the deceased person had given him the right to proxy vote on his behalf.
He added that the the authorities at both the companies had not received any communication declaring Hazari as dead and that Hazari continued to be member.
He added that the proxy votes did not impact the outcome. Under the Companies Act, a person can authorise another for casting vote on his behalf, which is called a proxy vote.
File photo of the Ludhiana Stock Exchange