ACCOUNTS

173

to protect the interests of the company, the board confining
itself to issuing a cheque on the current banking account
for the total amount of the warrants, as stated. This is
paid into a special dividend account with the bank, accom-
panied by an order of authority for the acceptance of the
secretary’s signature and/or accountant’s or registrar’s initials
on all warrants presented against such an account.

Finally, all warrants are carefully examined to see that
none are unsigned or missing, and enclosed in envelopes
which have been in the meantime prepared, unless window
envelopes are utilised, which is now very usual. They are
then counted, checked and agreed with the total number to
be issued and, all being in order, they are posted on the day
fixed by the board.

With many companies, an adhesive or impressed stamp,
is used for the envelopes, and in this case the counting and
checking of the warrants must be performed by one or more
responsible clerks, who must personally take them to the
post, and sign a certificate at the foot of the dividend sheets
to the effect that the number of warrants as therein referred
to were posted by them at a particular post office at a certain
time on the day fixed. Where, however, as is the case with
large companies, the company pays the postage in one sum
and collects a definite receipt from the Post Office for so
many addressed envelopes, this forms the company’s cer-
tificate for having posted the number stated. Some large
companies use a machine which encloses and stamps at one
operation: each ‘franking’ (or stamping) is noted numeri-
cally in an attached recording apparatus sealed and under
the control of the postal authorities.

Application should be made to the bankers for paid dividend
warrants. After being checked off against the pass book
they should be put in numerical order and marked off on the
dividend sheets.

In cases where a large number of warrants are paid to the
same bank for account of various shareholders, it is the
custom, with some companies only to fill in the advice note
and income tax certificate, the warrant itself being detached
and cancelled. Special lists are then made, and one warrant
only is prepared for the total amount in accordance with
each of such lists and despatched to the bank a few days
prior to the general posting together with the list and the
advice notes.

Applications may be received from time to time from
shareholders notifying the company that they have not
received their dividend or interest warrants, or that these,
having been received, have been lost or destroved. The