Dividend warrants encashable at par at all branches of companies’ bankers ‑ Desirability of. - Companies Law - No. 15(34)‑CL‑VI/64,

Circular: No. 15(34) ‑ CL ‑ VI/64, dated 1 ‑ 9 ‑ 1964. Subject:- Dividend warrants encashable at par at all branches of companies bankers ‑ Desirability of. Representations have been received by the Company Law Board that the present practice adopted by some companies of issuing dividend warrants encashable only at particular branches of the bankers of the companies has caused some hardships to small investors, who, normally reside outside the registered offices of the companies concerned, in obtaining payment. it has also been represented to the Company Law Board that should companies issue dividend warrants encashable at par on all branches of the companies bankers, it would, apart from reducing the hardships to small investors, also act as an inducement to small outstation investors in taking up shares of companies the essential reason being that in case of small investments, the cost of collection may not be commensurate with the dividends received. It is understood that in respect of companies listed on the stock exchanges, the stock exchanges themselves have suggested the issue of dividend warrants payable at par at all branches of the bankers of the companies concerned. Some companies, it is reported, have already adopted the practice of issuing dividend warrants encashable at par at all the branches of the companies bankers.