Finally, as a move to relieve the Corporate of huge financial burden of sending physical documents such as notices etc. by Registered Post instead of Under Posting Certificates after it being discontinued by the Postal Authorities, the Ministry of Corporate Affairs has come up with a Green Initiative of permitting the service of documents upon the Shareholders through e-mail or other permissible electronic modes instead of physical mode. The move is not only a Green Initiative but also a big boon for the corporate incurring huge financial expenditures on the printing and dispatch of documents from time to time and a directional approach towards the IT revolution.
The ministry has utilized the provisions of Section 2, 4, 5 and 81 of the Information Technology Act 2000 which provides for an overriding effect to the provisions of the IT Act and calls for adequate compliance of law in case the requisite information which otherwise would have been made available in writing, typewritten or printed form, if such information is made available in electronic form. Similarity the authenticity of digital signatures has been provided for herein.
The notification further provides that the company has to take consent from members for sending the notice / documents to them through email and has to provide a forum for registering and changing the email from time to time. Others who do not opt for electronic mode of information or whose email is not registered would be served information in the manner as provided in section 53 of the Companies Act, 1956.
The supporting circular is attached herewith.