Account for declaration of final dividend

This query is : Resolved

CS Mohit Khanna (Querist)
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28 September 2012 A private company has previously opened a bank account for payment of dividend for year end 2011.

Now, the company has declared dividend for year end 2012 , Can the company make that previous dividend account active or it is mandatory to have separate bank account for each such payment of dividend ?

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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28 September 2012 It must have a separate bank account. However, if all the dividend of last year has been paid.

This account may be used for dividend distribution as a separate account for dividend distribution.