noun
A document or letter circulated among a group, such as a notice or announcement passed around for everyone to read.
町内会の回状が回ってきた。
The neighborhood association's circular came around.
回状に目を通してから、次の人に回してください。
Please read the circular and then pass it on to the next person.
回覧 refers to the act of circulating a document or the circulated document itself, often used in office or community contexts. 回状 specifically refers to the circulated letter or notice.
Compound of 回 (circulate) and 状 (letter/document). The variant 廻状 uses the older form 廻 for 'circulate'.