Companies Act, 1956

Sec 206    -    Dividend not to be paid except to registered shareholders or to their order or to their bankers.

(1) No dividend shall be paid by a company in respect of any share therein, except

(a) to the registered holder of such share or to his order or to his bankers ; or

(b) in case a share warrant has been issued in respect of the share in pursuance of section 114, to the bearer of such warrant or to his bankers.

(2) Nothing contained in sub-section (1) shall be deemed to require the bankers of a registered shareholder to make a separate application to the company for the payment of the dividend.