dividend payment
This query is : Resolved
vishesh chaturvedi
(Querist)
14 October 2008
Can a company pay dividend in cash under acknowledgement
or there is any provision/rule which specified that it should be paid by cheque/warrants?
Sect 205A say co. must open a separate accout for div.and deposit div amount wthn 5 days frm the date of declaration.
If a pvt co. directly sending cheques in 30 days from the date of declaration.
whether is is violating the law.
or there is any provision/rule which specified that it should be paid by cheque/warrants?
Sect 205A say co. must open a separate accout for div.and deposit div amount wthn 5 days frm the date of declaration.
If a pvt co. directly sending cheques in 30 days from the date of declaration.
whether is is violating the law.
CA Gaurav Khanna
(Expert)
14 October 2008
I do not think that you can pay dividend in cash.
Since as per section 205 (1A) you need to deposit the money in a separate bank account within five days from the date of declaration.
205A as refered by you is relating to the unclaimed dividend within a period of thirty days. Such amount has to be deposited to another bank account.
Since as per section 205 (1A) you need to deposit the money in a separate bank account within five days from the date of declaration.
205A as refered by you is relating to the unclaimed dividend within a period of thirty days. Such amount has to be deposited to another bank account.
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