06 August 2012
The word order means a person to whom the dividend is to be paid pursuant to the order of the member. This is usally called mandate. A written authority given by one person the mandator to another the mandatory giving the mandatory the power to act on behalf of the mandator. Thus by this mandate, a dividend is paid to any other person as registered member has instructed.
Normally in case where instrument of transfer is received by the company before the commencement of closure of register of members and register of transfer, but not registered before the end of the closure, the transferor i.e registered holder may give such mandate to the company to pay dividend to the transferee.
06 August 2012
thanks mr. mitesh, in that case if say a member holding 10% share if give a mandate form to transfer his share of dividend to y another member, can the company do act as per that mandate on presumption
a) company did not receive the instrument of transfer yet. b) company received instrument of transfer but such transfer not yet effected? c) In situation a can a company legally pay dividend based on the mandate form? Please help.
06 August 2012
right but our worry is a specific circumstance where we just want to know whether otherthan transfer of share cases can a registered member simply mandate a company to transfer his share of dividend to another member. Can company comply that order?
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