Referring to the provisions of Companies Act, 2013 advice a public company which declared dividend on 30th September, 2018 as to the procedures to be followed in this regard for payment of dividend. Whether any interveni

Section 123(4) of the Companies Act, 2013 provides that the amount of the dividend, including interim dividend, shall be deposited in a scheduled bank in a separate account within five days from the date of declaration of dividend. However, in case of a Government Company, sub section 4 of Section 123 shall not apply if the entire paid-up share capital is held by the Central Government, or by any State Government or Governments or by the Central Government and one or more State Governments or by one or more Government Company. Inferring from section 124(1) , dividend must be paid to any shareholder entitled to the payment of the dividend, within 30 days from the date of declaration of dividend. Secretarial Standard-3 (SS-3) hereby clarifies that the Dividend shall be deposited in a separate bank account within five days from the date of declaration and shall be paid within 30 days of declaration. The intervening holidays, if any, falling during such period shall be included. Therefore, in the given illustration, the dividend shall be deposited into a separate bank account of a scheduled bank on or before 05.10.2018 and the same must be paid to the registered shareholder or to his order or to his banker on or before 30.10.2018.