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Calculation of date to transfer dividend to bank account

Paridhi Somani (Student) (72 Points)

27 August 2012

Dear Members,

Our date of AGM is 29th of September and according to the provisions of Companies Act the bank Account should be opened within 5 Days from the Date of AGM. My query is, is the Date of AGM included in that 5 days. Please tell me the the last date of transferring the amount to the Bank Account.

Thanks

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1 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 27 August 2012

Dear Paridhi,

Under section 205 the amount of deposit must be deposited in the Dividend Account of the Company within 5 Days of the date of AGM. Accordingly, the Company must have opened the dividend account for the year before the date of AGM and the amount of deposit must be deposited with the said dividend account within 5 days.

In case of the AGM of 29th September the amount must be transferred to the Dividend Account on or before 4th September.