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Govt permits companies to send notices by email

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CIOL Bureau
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NEW DELHI, INDIA: As 'going green' has become the in-thing in the modern life, and paperless communication a new way for the corporate India, the central government also has decided to contribute its share in going green by allowing companies to send notices and documents to their shareholders and members electronically.

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In a circular, no 17/2011, issued on April 21, 2011 regarding the service of sending documents by e-mail, the Ministry of Corporate affairs said the government has taken a green initiative, which allows companies to send notices and documents as emails instead of Under Postal Certificate (UPC).

“The Ministry of Corporate Affairs has taken a 'Green Initiative in Corporate Governance' by allowing paperless compliance by the companies after considering the section 2,4,5 and 81 of Information Technology Act, 2000 for legal validity of compliance under Companies Act through electronic mode,” read the circular.

As per the Section 53 of Companies Act, 1956 'Under Postal Certificate' is one of the accepted mode of service to send documents. However, the Department of Posts has already discontinued the facility vide their letter dated 23.02.2011. So, the Information Technology Act, 2000 permits the service of documents etc. in electronic mode, added the circular.

“Keeping in view of above, it is hereby clarified that a company would have complied with section 53 of companies Act, if service of documents has been made through electronic mode provided the company has obtained the e-mail address of its members for sending the notice/documents through e-mail by giving an advance opportunity to every shareholder to register their e-mail address and changes therein from time to time with the company,” said the circular.

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