The government has allowed companies to send notices and documents to their shareholders and members electronically in order to facilitate paperless communication. The Green Initiative for Corporate Governance announcement by the Corporate Affairs Ministry comes after the Department of Posts discontinued the postal facility under the ‘Certificate of Posting’.
It is also in line with the Information Technology Act, 2000, which “permits service of documents, etc, in electronic mode”, the ministry said in a circular.
“Keeping in view the above, it is hereby clarified that a company would have complied with Section 53 of the Companies Act if the service of document has been made through electronic mode, provided that the company has obtained e-mail addresses of its members for sending the notice/documents through e-mail…,” it said.
CAclubindia
