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Microlesson · 5-min read

Service of Documents (Section 20)

# Service of Documents — Section 20 of the Companies Act, 2013

Section 20 prescribes the modes by which documents may be served on a company, on its members, and on the Registrar.

## 1. Service on a Company or its Officer

Documents may be served on the company or any officer by sending it to the registered office of the company by any of the following modes:

  • Registered post
  • Speed post
  • Courier service
  • Leaving it at the registered office
  • Electronic or other prescribed mode

### Special Provision — Depositories

Where securities are held with a depository, the records of beneficial ownership may be served by such depository on the company by electronic or other mode.

## 2. Service on the Registrar or a Member

Documents may be served on the Registrar or any member by sending it to him by:

  • Post / Registered post
  • Speed post
  • Courier service
  • Delivering at his office or address
  • Electronic or other prescribed mode

### Member's Right to Choose Mode

A member may request delivery through a particular mode. In such a case, the member shall pay such fees as may be determined by the company in its Annual General Meeting (AGM).

## 3. Key Definitions

  • Courier: A person or agency that delivers the document and provides proof of delivery.
  • Electronic transmission: A communication that creates a record capable of retention, retrieval (recovery) and review, and which may thereafter be rendered into clearly legible tangible form. It includes:
  • Facsimile (fax) or email provided by the company/officer for sending communications;
  • Posting on an electronic message board or network designated by the Registrar/member for such communication, with valid delivery upon posting;
  • Other means of electronic communication where the company/officer has reasonable systems to verify the sender's identity.

## 4. Deemed Time of Service — Delivery by Post (Sub-section 2)

In case of delivery by post, service is deemed to have been effected as follows:

Type of DocumentDeemed Time of Service
Notice of a meetingOn expiration of 48 hours after the letter is posted
Any other caseAt the time the letter would be delivered in ordinary course of post

## 5. Exception — Nidhi Company

For a Nidhi company, documents may be served only on members who hold shares of:

  • More than ₹1,000 in face value, OR
  • More than 1% of the total paid-up share capital of the Nidhi,

whichever is less.

For other shareholders, the document may be served by:

  • Public notice in a newspaper circulated in the district where the registered office of the Nidhi is situated, AND
  • Publication on the notice board of the Nidhi.

Worked example

### Example 1

Example 1 — Deemed service of notice of meeting:

XYZ Ltd. posts a notice of its AGM by registered post to all members on 1st June at 10:00 AM.

Answer: Under Section 20(2), service of a notice of a meeting by post is deemed effected on the expiration of 48 hours after posting — i.e., service is deemed complete on 3rd June at 10:00 AM, regardless of actual delivery date.

### Example 2

Example 2 — Member's choice of mode:

Mr. A, a member of LMN Ltd., requests that the annual report be delivered to him by courier rather than ordinary post.

Answer: Under the proviso to Section 20(2), the member is entitled to request a particular mode of delivery, but must pay the fee determined by the company in its AGM for that mode.

### Example 3

Example 3 — Nidhi company service:

A Nidhi company has a total paid-up capital of ₹50 lakhs. Mr. P holds shares of face value ₹500. Should documents be served personally on him?

Answer: Mr. P holds shares of less than both ₹1,000 in face value and 1% of paid-up capital. Hence, documents need not be served on him personally — service by public notice in a local newspaper plus publication on the Nidhi's notice board is sufficient.

⚠️ Common exam mistakes

  • Treating the 48-hour deemed service rule as applicable to all documents — it applies only to notices of meetings.
  • Forgetting that the member must pay fees (as fixed in AGM) when requesting a special mode of delivery.
  • Overlooking the special depository provision for service via depositories.
  • Forgetting the Nidhi exception — personal service only for members above ₹1,000 face value or 1% of paid-up capital, whichever is less.
Bare-Act text Section 20 · Companies Act, 2013 · click to expand
Section 20 of the Companies Act, 2013 — Service of Documents: (1) A document may be served on a company or an officer thereof by sending it to the company or the officer at the registered office of the company by registered post or by speed post or by courier service or by leaving it at its registered office or by means of such electronic or other mode as may be prescribed: Provided that where securities are held with a depository, the records of the beneficial ownership may be served by such depository on the company by means of electronic or other mode. (2) Save as provided in this Act or the rules made thereunder for filing of documents with the Registrar in electronic mode, 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.
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