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Min. Of Corporte Affairs Starts Green Initiative In Corporate Governance

MCA, the Ministry of Corporate Affairs has started a Green Initiative in Corporate Governance. According to this, companies are allowed to serve documents to their shareholders through electronic mode, which previously required to be presented in the form of hardcopies. It was stated under section 219 of Companies Act 1956 that the Annual Reports to its members have to be sent in physical form.

Larsen Toubro L&T Logo

Larsen Toubro (L&T)

This initiative was taken by the authorities to stop wastage of a lot of paper and ultimately save trees. The notice was circulated in various companies including Larsen & Toubro Ltd (L&T) and Aditya Birla Group, which they approved of.

Hence, proposals have been made by the companies to send documents such as notices of general meetings, annual reports and other communications and notices to the shareholders through e-mail. There are ofcourse certain guidelines which the companies have to comply with.

In case the e-mail address of any of the members is not registered by the concerned authorities, then the Annual Reports comprising of Balance Sheet, Profit & Loss Account, Director’s Report and Auditor’s Report can continue to be sent in hardcopies.

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