Going green is no more just a fad with environmentalists. The corporate affairs ministry

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(MCA) too has joined the bandwagon, issuing a circular on ‘Green initiative in corporate governance’.

Under the circular, companies need not sent voluminous material about them to shareholders and instead send them though e-mail. The ministry said that the Information Technology Act permits documents to be sent through electronic mode. “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,” the circular said. Section 53 of the Companies Act says that all documents would have to be sent to shareholders under certificate of posting.

It said that the company would have to ensure that every shareholder gets an opportunity to register the company’s e-mail address and changes therein from time to time. Such norms will be mandatory for companies to comply with before switching to the electronic mode of documentation.

In cases where a company member fails to register his e-mail address, the mode of documentation will continue to be through certificate of posting as provided under section 53 of the Companies Act.

ajaykumarshukla

@mydigitalfc.com