Dividend distribution ( Bank Account Dillemma)
This query is : Resolved
Guest
Guest
(Querist)
28 September 2008
This is with regard to 205 1A of Dividend distribution.
The language of the provision is very plain, as it does not throw more light on the matter.
Here is a practical case in which a public but non-listed company (i.e.closely held company)wants to distribute dividend to its 6 shareholders.
It is very clear that, the public at large is not interested in the company.
The problem I encountered is regarding a seperate dedicated dividend account.
Is is essential for company to route the payment through this account?
please help!!!!!!!!!!!!!!!!!!
The language of the provision is very plain, as it does not throw more light on the matter.
Here is a practical case in which a public but non-listed company (i.e.closely held company)wants to distribute dividend to its 6 shareholders.
It is very clear that, the public at large is not interested in the company.
The problem I encountered is regarding a seperate dedicated dividend account.
Is is essential for company to route the payment through this account?
please help!!!!!!!!!!!!!!!!!!
28 September 2008
Yes ,otherwise interest will be calculated as per provisions .Simply ,open an account with scheduled bank and credit amount there
Guest
Guest
(Querist)
28 September 2008
Thank you for response, but that is still not clear to me.
I want to know, whether it is mandatory in the practical case?
I want to know, whether it is mandatory in the practical case?
29 September 2008
It is mandatory, as no exemption has been given for closely held companies.
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