Bare ActsCompanies Act, 1956

Section 206

Dividend not to be paid except to registered shareholders or to their order or to their bankers

Amendment status not verified — confirm the current text below against the official source.

(1) No dividend shall be paid by a company in respect of any share therein, except-- (a) to the registered holder of such share or to his order or to his bankers; or (b) in case a share warrant has been issued in respect of the share in pursuance of Section 114, to the bearer of such warrant or to his bankers. (2) Nothing contained in sub-section (1) shall be deemed to require the bankers of a registered shareholder to make a separate application to the company for the payment of the dividend.

Section 206 – Companies Act, 1956 | DailyLaw.ai