Medium Ltd, an unlisted company with a net worth of ₹5 Crore and turnover of ₹50 Crore has 200 shareholders spread across the country. Out of this, 175 shareholders hold their shares in dematerialized format while the re

Rule 11 of the Companies (Accounts) Rules 2014 provides for the manner in which circulation of financial statements can be made to the eligible members. In case of all listed companies and such public companies with a net worth of more than ₹1 Crore and turnover of ₹10 Crore, the financial statements may be sent: By electronic mode to such members whose shareholding is in dematerialized format and whose email ids are registered with Depository for communication purposes; Where shareholding is held otherwise than by dematerialized format, to such members who have positively consented in writing for receiving by electronic mode and; For the rest, by dispatch of physical copies through any recognized mode of delivery such as registered post, speed post, courier etc. as specified under section 20 of the Act. In view of the above, Medium Ltd can send the financial statements by electronic mode to the 175 shareholders who hold in dematerialized format and can approach the balance 25 shareholders to get their consent for receiving the financial statements by electronic mode. To the extent, they succeed in getting such consent, the circulation will be efficient. Where they are not successful, they can send them in physical mode.