Veer, a director of Jyoti Ltd. gave in writing to the company that the notice for any general meeting and of the Board of Directors' meeting be sent…
CA Intermediate · Corporate and Other Laws · MTP · May 2026
Veer, a director of Jyoti Ltd. gave in writing to the company that the notice for any general meeting and of the Board of Directors' meeting be sent to him only by registered post at his residential address at Bangalore for which he deposited sufficient money. The company sent notice to him by ordinary mail under certificate of posting. Veer did not receive this notice and could not attend the meeting and contended that the notice was improper. Decide, as per the provisions of the Companies Act, 2013: (i) Whether the contention of Veer is valid. (ii) Will your answer be the same if Veer remained in U.S.A. for one month during which the notice of the meeting was served and the meeting was held?
Suggested Answer and Working Notes:
According to section 20 (2) of the Companies Act, 2013, a document may be served on Registrar or any member by sending it to him by post or by registered post or by speed post or by courier or by delivering at his office or address, or by such electronic or other mode as may be prescribed. Provided that a member may request for delivery of any document through a particular mode, for which he shall pay such fees as may be determined by the company in its annual general meeting. Thus, if a member wants the notice to be served on him only by registered post at his residential address at Bangalore for which he has deposited sufficient money, the notice must be served accordingly, otherwise service will not be deemed to have been effected. Accordingly, the questions as asked may be answered as under: (i) The contention of Veer shall be tenable, for the reason that the notice was not properly served. (ii) In the given circumstances, the company is bound to serve a valid notice to Veer by registered post at his residential address at Bangalore and not outside India.
Topics: Incorporation of Company and Matters Incidental Thereto
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