04 December 2015
an unlisted company has declared dividends but some of its shareholders are not traceable, so the company issued demand drafts for theses shareholders from the dividend bank account and posted the demand drafts to their last address as available with it within specified days of declaration of dividend.Is the liability of Company with respect to payment of dividend complete? Do it need to transfer any amount to unpaid dividend account, when at present its dividend bank account shows nil balance?
04 December 2015
Yes the amount remain unpaid within 30 days from the date of declaration has to be transferred to unpaid dividend account within 7 days. When it shows nil balance no need for any transfer.
04 December 2015
The liability of the company is deemed to have been completed since balance in dividend payable a/c is Nil.
Ps:- Unpaid dividend for a period of seven years from the date they became due for payment shall be credited to the INVESTOR EDUCATION PROTECTION FUND.
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