Capital reduction
This query is : Resolved
Esha Desai
(Querist)
26 March 2012
Our Company has reduced share capital with the approval of the High Court.
The Demand Drafts of the relvent amount were dispatched to all shareholders.
However, some of the shares have not claimed the amount and the same is remaining unpaid with the Company.
Now, the question is shall this amount be transferred to IEPF account or which procedure and accounting treatment should be followed.
Please guide us in the matter.
The Demand Drafts of the relvent amount were dispatched to all shareholders.
However, some of the shares have not claimed the amount and the same is remaining unpaid with the Company.
Now, the question is shall this amount be transferred to IEPF account or which procedure and accounting treatment should be followed.
Please guide us in the matter.
CA Prashant Gupta
(Expert)
26 March 2012
This amount will be kept in separate bank account till 7 years and after 7 years this amount will be transferred to IEPF.
Esha Desai
(Querist)
27 March 2012
Section 205c(2) does not refer the above mentioned amount.
The clause is very specifically mentioning the amount that have to be transferred to IEPF in which unpaid amount of capital reduction is not mentioned.
The clause is very specifically mentioning the amount that have to be transferred to IEPF in which unpaid amount of capital reduction is not mentioned.
CA Prashant Gupta
(Expert)
27 March 2012
We have to understand the intention of the law, if any specific provision is not available for the issue, we have to refer the similar provisions of the law.
There is no specific provisions are available for such issue hence treatment of similar issues will prevail.
There is no specific provisions are available for such issue hence treatment of similar issues will prevail.
CA Prashant Gupta
(Expert)
27 March 2012
We have to understand the intention of the law, if any specific provision is not available for the issue, we have to refer the similar provisions of the law.
There is no specific provisions are available for such issue hence treatment of similar issues will prevail.
I can't find the specific provision for same, if you are able to find the specific treatment then go for it.
There is no specific provisions are available for such issue hence treatment of similar issues will prevail.
I can't find the specific provision for same, if you are able to find the specific treatment then go for it.
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Esha Desai
(Querist)
27 March 2012
Thanks for the prompt reply.
Yes Companies Act is silent in this regard.
As this is not Comapny's fund.Amount pertains to that of the shareholders. In my view also the amount shall be transfered to IEPF account after 7 years.
But another ques in which name the account shall be opened. Can it be opened in the name of "unclaimed scheme of arrangement account'?
Yes Companies Act is silent in this regard.
As this is not Comapny's fund.Amount pertains to that of the shareholders. In my view also the amount shall be transfered to IEPF account after 7 years.
But another ques in which name the account shall be opened. Can it be opened in the name of "unclaimed scheme of arrangement account'?
CA Prashant Gupta
(Expert)
27 March 2012
yes, you can. you can also use the name "unclaimed- capital reduction account".
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