Q.Write a letter to the member for the payment of dividends through the Dividend Warrant.

A letter to a member for payment of dividend through a dividend warrant is a formal correspondence from the secretary informing the member that the declared dividend is being paid by an enclosed warrant, stating the amount and how to encash it. The properly formatted specimen letter is the answer.

When the shares are held in physical form or bank details are not registered, a company often pays dividend by a dividend warrant — a cheque-like instrument that the member can deposit or encash at a bank. It is the secretary's duty to send this warrant along with a covering letter to each entitled member. Such a letter must carry the company's details, a reference/serial number, the date, the subject, a courteous body stating the amount and warrant details, and the secretary's signature.

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