Section 5(7) in The Companies (Temporary Restrictions On Dividends) Act, 1974
(7)Where, after the commencement of the Companies (Temporary Restrictions on Dividends) Amendment Act, 1975 , a company to which this Act applies declares dividend for a financial year exceeding, in the aggregate, its distributable profits for that financial year, the company shall post, within forty- two days from the date of such declaration, to every shareholder entitled to the payment of the dividend, a warrant authorising the payment of the dividend so de- clared, but the said warrant shall be so prepared as to authorise-(a) immediate payment of so much of the dividend as does not exceed the distributable profits of the company for the financial year aforesaid (hereinafter referred to as the" immediate dividend"), and(b)the payment of the deferred dividend on the respective dates on which each instalment of the deferred dividend becomes due and payable.
