The Ministry of Corporate Affairs (MCA), has made certain elucidation vide Circular no. 18/ 2011 dated 29th April 2011 with regard to the Green Initiative in the Corporate Governance wherein, the Companies are now allowed to send the Balance sheet, Profit& Loss A/C, Auditor’s Report, Director’s Report and Explanatory Statement etc. via e- mode in accordance with MCA Circular dated 21/4/2011.
The MCA had been receiving representation from various industrial bodies to give way to e-transit of the above specified documents under section 219 of the Companies Act, 1956.
The MCA has issued these circulars after considering in details the provisions of Section 2, 4, 5 and 81 of the Information Technology Act 2000. The Section 4 of the Information Technology Act, 2000 provides as: ” Where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is – (a) rendered or made available in an electronic form and (b) accessible so as to be usable for a subsequent reference”.
In light of above provisions and circumstances it is clarified that the company would be in compliance of section 219(1) of the Companies Act, 1956 where a copy of Balace sheet etc., is send by e-mail to its members subject to the fact that the company in has obtained :-
1) the e-mail address of the members by giving them an opportunity for registering their e-mail address, if any , for the mailing of the documents referred above
2) In case, where the member(s) have not registered themselves the notices, documents, Balance sheet etc will be send by other modes of services as provided u/s 53 of the Companies Act, 1956.
3) Where, any member(s) insist for physical copies of the documents, the same will provided by post for free of cost.
4) The Company’s must display on their website the full text of these documents in advance prior to the mandatory period and issued advertisement in prominent newspapers both in vernacular and English language stating the availability of the documents on the web site and for inspection purpose at the registered office of the company during office hours.
6) Website must be user friendly with the option of easy accessibility of the documents.
Refer below mentioned link for full contents of the Circular.