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Can a shareholder order company to pay his dividend to some other person

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(Querist)
22 February 2025 As per law, can a shareholder order company to pay his dividend to some other person
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
22 February 2025 If you wish to divert your tax liability to third person, that is not feasible, as TDS will be deducted from shareholders PAN.
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
22 February 2025 yes. the dividend can be paid to another person if the shareholder has given to the company a mandate in favor of that person. section 123(5) of the companies act provide for "to the order of the shareholder" as an option for payment of dividend.

you may also refer to page 21 of the ICSI Guidance note on Dividend

Dividend payment to the mandatee
If a Member has given a mandate, Dividend should be paid to the person in
whose favour the mandate has been given.
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