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Separate account for dividend

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Querist : Anonymous

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Querist : Anonymous (Querist)
17 September 2013 Dear Sirs,
Why under companies law a separate account is required to be opened for declaration and payment of Dividend.

We have already opened an account for declaration of dividend but dividend is yet to be declared, can transfer some amount in that account and use that for other purposes.
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Nikhil Kaushik

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Nikhil Kaushik (Expert)
17 September 2013 No. You cannot use the money for any other purpose. However, it begs an explanation why you want to transfer money to the said account if the dividend is yet to be declared?

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