Neha Redekar
Quick Summary
UNPAID DIVIDEND ACCOUNT Pursuant to the provisions of section 124 of the Companies Act, 2013, where a dividend has been declared by a company but has not been paid or claimed within 30 days from the date of the declaration byany shareholder, then the company shall, within 7 days from the date
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FAQ :
The Unpaid Dividend Account is a special bank account where companies must transfer dividends that have been declared but not paid or claimed by shareholders within 30 days of declaration.
Any money in the Unpaid Dividend Account that remains unpaid or unclaimed for seven years from the date of transfer is transferred by the company to the Investor Education Protection Fund (IEPF), along with any accrued interest.
Shares for which dividends have not been paid or claimed for seven consecutive years or more must also be transferred by the company to the IEPF within 30 days of becoming due for transfer.
A claimant can submit an online application in Form IEPF-5 on the IEPF website, along with the required fee and supporting documents, and send the original physical share certificates or other relevant documents to the company's Nodal Officer for verification.
Yes, companies face penalties for default, including a fine of Rs. 1,00,000 and a further Rs. 500 per day for continuing failure, up to a maximum of Rs. 10,00,000. Officers in default also face penalties.
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