Can dividend be paid in hard cash/currency?? If we can keep cash receipt confirmation from the recipient, will this be legal?
Can dividend be paid in hard cash/currency?? If we can keep cash receipt confirmation from the recipient, will this be legal?
Section 205(5)(b) of the Companies Act, 1956 provides that the dividend payable in cash may be paid either by cheque or warrant.
Regards,
ARJUN RAJAGOPAL
And can share application money be paid in cash?? As per the old Act as well as the new Act?
It is not clear from your side. Any way ,as per Sec. 42 of the Companies Act, 2013(yet to be notified) companies will not be able to receive share application money in cash. An Escrow A/c should be opened by the company to receive share application money and utilise that money only for the purpose of allotment of shares.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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