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Microlesson · 5-min read

Service of Documents (Section 20)

# Service of Documents — Section 20

Section 20 of the Companies Act, 2013 prescribes how documents may be validly served on the company, its members, and the Registrar.

## A. Service on a Company or Its Officer

A document may be served by sending it to the company/officer at the registered office by any of:

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

Special case — Depository: Where securities are held with a depository, records of beneficial ownership may be served on the company by the depository through electronic or other mode.

## B. Service on the Registrar or a Member

May be sent by:

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

Member's right: A member may request a particular mode of delivery. He must pay such fee as the company determines in its AGM.

## C. Special Rule for Nidhi Companies

Documents may be served only on members holding:

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

(whichever is less).

For other shareholders, service is effected by:

1. Public notice in a newspaper circulating in the district of the Nidhi's registered office; AND

2. Publication on the Nidhi's notice board.

## D. Deemed Time of Service by Post (Sub-section 2)

Type of DocumentDeemed Time of Service
Notice of a meetingExpiry of 48 hours after posting
Any other caseAt the time it would be delivered in the ordinary course of post

## Key Definitions

  • Courier: A person/agency that delivers documents and provides proof of delivery.
  • Electronic transmission: Communication that creates a record capable of retention, retrieval and review, and can be rendered into clearly legible tangible form. Includes:
  • Fax or email (provided by the company/officer);
  • Posting on an electronic message board/network designated for such communication (valid on posting);
  • Other electronic means where reasonable verification systems are in place.

Worked example

### Example 1

Example: A listed company posts the notice of its AGM to a shareholder by registered post on 1 June. The AGM is scheduled for 25 June. Under Section 20(2)(a), the notice is deemed served at the expiry of 48 hours after posting, i.e., 3 June. The 21 clear days' notice requirement is therefore met.

### Example 2

Example — Nidhi: A Nidhi has 5,000 members. Mr. A holds shares of face value ₹500 (0.05% of paid-up capital). The Nidhi need NOT serve individual notice on Mr. A; it may serve him by public notice in the local newspaper plus its notice board, since he does not meet the ₹1,000 / 1% threshold.

⚠️ Common exam mistakes

  • Forgetting that service on the company must be at the REGISTERED OFFICE — service at a branch or corporate office is not valid under Section 20.
  • Ignoring the 48-hour deemed-service rule for meeting notices when computing notice periods.
  • Applying the general rule to Nidhi companies — Nidhi has a special abridged service mechanism based on shareholding thresholds.
  • Forgetting that a member who requests a particular mode of delivery must pay the fee fixed by the company in its AGM.
Bare-Act text Section 20 · Companies Act, 2013 · click to expand
Section 20 — 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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