As per Companies Act, after the declaration of dividends, bank accounts needs to be opened in 5 days. Do those 5 days include holidays also ?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 08 October 2009
Hi,
Kindly appreciate it is not mandatory to open bank account in case of dividend with in 5 days of AGM. You may open the bank account for dividend well in advance.
My practice is to pass board resolution for opening the bank account in case of dividend in the board meeting which adopts the Annual Account. You may also adopt the same practice.
Regarding your query == Yes those 5 days includes holiday.
Regards
CAclubindia
