how is the date for trf of unpaid dividend to IEPF calculated? Should i consider it frm the date of first declaration plus 7 yrs thereat or from date of declaration + 30 days + 7 days for trf to unpaid a/c+ 7 yrs?? Im confised as diff companies follow diff practices!! thanx
It is from the date of transfer of amount to the unpaid dividend account i.e. 30 days from the date of declaration of dividend in AGM. Pl go through the provisions of Section 205A(5) of the Companies Act, 1956.
30 June 2009
Section 205(1A)- A company must deposit the entire amount of dividend declared at AGM, in a seperate bank account within 5 days from the date of declaration.
A dividend declared at AGM must be paid within 30 days from the date of AGM.
Section 205A- The Company must transfer the total amount of dividend which remains unpaid/unclaimed to "Unpaid Dividend Account" within 7 days from the date of the expiry of 30 days mentioned above. Thus, the transfer of the amount of dividend must be done within 37 days from the date of AGM at which it was declared. This period of 30 days would be inclusive of 5 days (from the date of AGM) within which the amount of dividend is required to be deposited in a seperate bank account.
Section 205C- The amount of dividend remaining unpaid/unclaimed in the special unpaid dividend account at the end of the period of 7 years from the date on which it was transferred, must be transferred by the company to the Investor Education and Protection Fund.
01 July 2009
205C states that the amounts remained unclaimed/unpaid for a period of 7 years from the date they became due for payment. Explanation to the said section states that the the funds which were unclaimed or unpaid for a period of 7 yrs from the date that they first became due for payment.
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