Penalty for failure to distribute dividends: directors knowingly defaulting face criminal sanction and company interest liability. Section 207 makes directors knowingly party to a failure to pay a declared dividend within thirty days subject to imprisonment and a continuing daily fine, and renders the company liable to pay simple interest for the period of default, while enumerating exceptions where no offence is deemed to have been committed, including legal impediment, shareholder directions, disputes over entitlement, lawful adjustment against sums due, or delays not due to the company.