Legal Question in Banking Law in Bangladesh

What is the validity period of a cheque?

Is there any difference between Dividend Warrant & a cheque?

If yes, can the issuer mention validity period at their own preference?


Asked on 2/07/10, 4:36 am

2 Answers from Attorneys
Abdullah Al Mubin

If period is not mentioned, banking practice is six months.

There is difference between dividend warrant and cheque.

Yes the issuer can.

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Answered on 2/09/10, 8:09 am
Adnan Karim, Barrister Temple Court Chambers (Dhaka Annexe)

Validity period for a cheque is six months. Dividend warrant and cheque are two quite different things although the concept is that the bank will pay to the bearer money on both occasions. For a Dividend warrant it is possible for the issuer to mention a validity period for accounting purpose however in case of expiry the company may have to pay cumulative dividend with next year's dividend.

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Answered on 2/11/10, 5:56 am


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