law: Companies (Amendment) Act, 2000
  94.
  
  Substitution of new section for section 207.-
  For
  
  section 207 of the principal Act, the following section shall be substituted,
  
  namely:- "207. Penalty for failure to distribute dividends within thirty
  
  days.-
  Where
  
  a dividend has been declared by a company but has not been paid, or the warrant
  
  in respect thereof has not been posted, within thirty days from the date of
  
  declaration, to any sh reholder entitled to the payment of the dividend, every
  
  director of the company shall, if he is knowingly a party to the default, be
  
  punishable with simple imprisonment for a term which may extend to three years
  
  and shall also be liable to a fine of one housand rupees for every day during
  
  which such default continues and the company shall be liable to pay simple
  
  interest at the rate of eighteen per cent. per annum during the period for
  
  which such default continues:
  Provided
  
  that no offence shall be deemed to have been committed within the meaning of
  
  the foregoing provisions in the following cases, namely:-
  (a)
  
  where the dividend could not be paid by reason of the operation of any law;
  (b)
  
  where a shareholder has given directions to the company regarding the payment
  
  of the dividend and those directions cannot be complied with;
  (c)
  
  where there is a dispute regarding the right to receive the dividend;
  (d)
  
  where the dividend has been lawfully adjusted by the company against any sum
  
  due to it from the shareholder; or
  (e)
  
  where, for any other reason, the failure to pay the dividend or to post the
  
  warrant within the period aforesaid was not due to any default on the part of
  
  the company.".