Company law

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AJIT DANOLE

AJIT DANOLE (Querist)
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30 March 2013 can private company appoint whole time director and managing director...?

Ajay Mishra

Ajay Mishra (Expert)
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31 March 2013 Hi

Yes, you are free to appoint MD or WTD, because the provision of section 269 is not applicable to private limited company.

So, you are free to appoint MD/WTD as per your company's articles.

AJIT DANOLE

AJIT DANOLE (Querist)
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17 January 2014 Hello sir, thanks...

AJIT DANOLE

AJIT DANOLE (Querist)
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17 January 2014 pl ans this following question;
after the redemption of preference shares the principle amount remains unclaimed then where it will be kept...?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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19 July 2024 After the redemption of preference shares, if the principal amount remains unclaimed by the shareholders, typically it will be transferred to a separate account known as the "Unclaimed Dividend Account" or "Unclaimed Redemption Account." Here’s how it generally works:

1. **Unclaimed Dividend Account:**
- In the context of dividends on preference shares, if the shareholders do not claim their dividends within a specified period (usually 30 days from the date of declaration), the unclaimed amount is transferred to the Unclaimed Dividend Account.
- This account is maintained separately by the company and the funds in this account cannot be used by the company for its operational purposes.
- Shareholders can claim their dividends from this account even after it has been transferred.

2. **Unclaimed Redemption Account:**
- For preference shares, if the shareholders do not claim the redemption proceeds (the principal amount) after the shares have been redeemed by the company, the unclaimed amount is transferred to the Unclaimed Redemption Account.
- Similar to the Unclaimed Dividend Account, this account holds the unclaimed amounts until claimed by the shareholders.
- The company must keep track of these amounts and ensure they are available for claim by the shareholders.

3. **Regulations and Compliance:**
- Companies are required to follow specific regulations regarding the management of unclaimed amounts, as per the Companies Act or relevant regulations in the jurisdiction where the company is incorporated.
- Periodically, the company may need to publish a list of unclaimed dividends or redemption amounts, notifying shareholders about the availability of these funds.

4. **Claim Process:**
- Shareholders can claim their unclaimed dividends or redemption amounts by providing the necessary identification and proof of ownership (such as original share certificates).
- Once the claim is verified by the company, the amount is paid out to the shareholder.

5. **Reporting Requirements:**
- Companies are also required to disclose details of unclaimed dividends and redemption amounts in their financial statements and annual reports.
- The company’s auditors typically review and confirm the compliance with these reporting requirements.

In summary, the unclaimed principal amount after the redemption of preference shares will be transferred to an Unclaimed Redemption Account or a similar designated account. Shareholders can claim these amounts by following the company’s procedures for unclaimed dividends or redemptions, ensuring compliance with regulatory requirements.

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