Necessity to transfer of dividend to a separate bank account

DEAR MR.SUNIL....

                        ONCE YOUR COMPANY DECLARES DIVIDEND , YOU NEED TO TRANSFER SUCH AN AMOUNT TO A SEPERATE DIVIDEND ACCOUNT OF THE INVESTORS BY OPENING AN ACCOUNT IN A SCHEDULED BANK ATER GIVING DUE NOTICE OR INFORMING THE INVESTOR. SUCH AN AMOUNT SHOULD BE DEPOSITED WITHIN 21 DAYS OF THE DECLARATION OF DIVIDEND.  

REGARDS..

TANVEER MD MASOOD

CALCUTTA.

That means a new bank account is to be open in the name of company even if it is a private limited company and only two share holders are there?

DEAR MR.SUNIL..

               TANSFER TO A SEPERATE DIVIDEND ACCOUNT HAS TO BE MADE ONLY IN CASE OF PROFIT MADE AND A SUBSEQUENT DECLARATION OF DIVIDEND. THIS IS THE MODE OF PAYMENT TO THE SHAREHOLDERS OF THE COMPANY..

Suppose the dividend is paid very next day to share holders directly via cheque, whether the above provision can overcome

COMPANIES ACT DOES NOT PRESCRIBE PAYMENT OF DIVIDEND THROUGH CHEQUE..U NEED TO GO THROUGH THE PROCESS WHICH HAS BEEN MENTIONED IN MY PREVIOUS REPLIES.