Legal provision regarding payment of dividend?

1.       The Dividend may be paid to—
·         The registered holder of a share or to his order or to his bankers or
·         To a bearer of share-warrant or to his bankers.
2.       The company pays dividend in proportion to the amount paid up on each share.
3.       The dividend shall be paid at cash.
4.       A company cannot pay dividend on advance payment of calls.
5.       If the dividend is not paid within 30 days or dividend warrant is not posted within 30 days from its declaration, every director i default will be punishable with simple imprisonment for a term of 3 years and shall also be liable to a fine of Rs 1000/- day during the period of default. The company shall be liable to pay simple interest at 18% p.a. during the period for which default continues.

6.       Dividend on preference shares is fixed by the Articles of Association and is to be paid accordingly.