SECTION 206

PAYMENT OF DIVIDEND TO REGISTERED SHAREHOLDER

Dividend warrants/refund orders - Whether required to be sent only by registered post

Query : Following complaints from several members of the Associated Chamber of Commerce & Industry of India, Calcutta, of which this Chamber is a constituent, it made a representation to the Central Government relating to the instructions contained in Postal Notice No.15, dated 12.1.1970, which required all dividend warrants and refund orders to be sent only by registered post. As a result of this representation the Central Government were pleased to reverse their earlier decision in October 1971, by issuing a further amendment to the Post Office Guide, Part I (June 1965 Edition) as follows:

"In section II--Clause 164--in sub-clause 1(d), delete the following words appearing after the words 'Bill of Exchange': Dividend Warrants, Refund Orders."

The effect of this amendment appears to be that dividend warrants and refund orders were not required to be sent by registered post. I should be grateful if you would kindly confirm that this position still continues and it is not obligatory to send dividend warrants and refund orders by registered post.

Answer : It is not obligatory to post dividend warrants and refund orders by registered post.

* EXTRACTS FROM LETTER DATED 2.10.1973 ADDRESSED BY BOMBAY CHAMBER OF COMMERCE AND INDUSTRY, BOMBAY TO POST MASTER GENERAL BOMBAY AND HIS REPLY NO. TECH 33/1/73, DATED 29.11.1973.