Transfer of Dividend Amount to Investor Fund
This query is : Resolved
Samar Bhatia
(Querist)
14 April 2009
Hi All Gurus
Our Company declared dividend of 8% for the year 1997-98, but the payment of the same was stayed by the High Court on the complaint of Financial Institutions.
We got the stay vacated in 2006 and made the payment of dividend to shareholders.
Now our Auditor is saying that the Dividend Amount should have been transfered to Investor Protection Fund within 7 years from the date of declaration.
As per my understanding the period of 7 years will be counted from the date of vacation of stay order of the High Court and not from the declaration of Dividend.
Please give replies.
Thanks
Samar
Our Company declared dividend of 8% for the year 1997-98, but the payment of the same was stayed by the High Court on the complaint of Financial Institutions.
We got the stay vacated in 2006 and made the payment of dividend to shareholders.
Now our Auditor is saying that the Dividend Amount should have been transfered to Investor Protection Fund within 7 years from the date of declaration.
As per my understanding the period of 7 years will be counted from the date of vacation of stay order of the High Court and not from the declaration of Dividend.
Please give replies.
Thanks
Samar
CA. B.SRINIVASULU
(Expert)
14 April 2009
Your understanding is correct. The 7 years time has to be calculated from the date of vacation of stay by High court and not the date declaration of dividend.
Samar Bhatia
(Querist)
14 April 2009
Thanks but i don't have any documentary support for that.
Do you have case law or commentary that support our stand.
Do you have case law or commentary that support our stand.
CA Nitin Wadhwani
(Expert)
15 April 2009
I agree with your opinion.
I think you should approach the ROC for a written clarification on this matter.
I think you should approach the ROC for a written clarification on this matter.
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