Once a company declares the dividend, amount of dividend should be deposited in scheduled bank within _____ and should be paid out within _____ from the date of declaration.

Solution

Depositing of amount of dividend - The amount of dividend including interim dividend to be deposited in scheduled bank within 5 days from the date of declaration of dividend• The dividend once declared, should be paid out within 30 days. Note - Where dividend has not been paid or claimed within 30 days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that behalf in any scheduled bank to be called the Unpaid Dividend Account.