Company Law committee - .Facilitating Communication in Electronic Form

 2.Facilitating Communication in Electronic Form

Section : Section 20 of CA-13

Issue to be addressed :

Section 20 of CA-13 outlines the different modes by which documents can be served on a company, its officers or the RoC. Section 20(2) stipulates that a document may be delivered to the ROC or any other member through registered post, speed post, courier or any other electronic mode as may be prescribed. While Section 20(2) expressly permits the service of documents in electronic form, the Committee deliberated whether the provision should be amended to mandate/enable certain class or classes of companies to serve documents totheir members in electronic mode only.

 

Section 20(2)9 CA-13 allows a member to request the delivery of any document through a particular mode by bearing the fees associated with the same, which the company may determine in its annual general meeting (“AGM”)

 

Amendments /Proposed Recommended by the Committee

 

The Committee recommended that Section 20 should be amended to introduce a specific provision enabling the Central Government to prescribe Rules, with suitable safeguards to protect the interest of investors, for such class or classes of companies for whom it shall be adequate to serve such documents as may be prescribed to all their members in electronic mode only for compliance with the provisions of the Act. However, where a member has requested the company to serve physical documents also, the company shall, as an investor friendly measure,also serve such documents in physical mode.