Companies Act, 1956
Section - 206 - Dividend not to be paid except to registered shareholders or to their order or to their bankers
Dividend not to be paid except to registered shareholders or to their order or to their bankers.206. (1) No dividend shall be paid by a company in respect of any share therein, except— (a) to the registered holder of such share or to his order or to his bankers; or (b) in case a share warrant has been issued in respect of the share in pursuance of , to the bearer of such warrant or to his bankers.(2) Nothing contained in sub-section (1) shall be deemed to require the bankers of a registered shareholder to make a separate application to the company for the payment of the dividend.
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