Cancellation of dividend

No. the Company's Act specifically states that once dividend has been declared it cannot cancell the same, further it has to deposit the same in a seprate bank account within 30 days of declaration.

No It cannot cancel the dividend.  Once declared,  dividend becomes a liability of the co & it is required to pay ti the shareholders after deducting CDT.  That's why the provision of Interim Dividend have been brought at par with that of the Final Dividend because Directors use to declare the Interim Dividend nad subsequently it used to get cancelled.  to curb this practice the provsion relating to INterim dividend have been amended by Companies Ameendment Act,2000.