Transfer of unpaid dividend

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Bharat Kapoor (Querist)
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26 February 2010 If a final dividend is declared at 22.08.2003 (AGM),
1) What is the date of transfering to Unpaid Dividend Account
2) When should the Company sen the notice to shareholders.
3) What is the last date of transferring amount to IEPF.

Its urgent, please

Rasesh

Rasesh (Expert)
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26 February 2010 Date of Transferring to Unpaid Dividend Account: 30 days from the date of payment of dividend which would be 15 days from the date of declaration. approx 7.10.2003

When Should company send notice to shareholders: I am not able to understand this query.

Last date of transferring amount to IEPF: 7.10.2010

Bharat Kapoor

Bharat Kapoor (Querist)
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26 February 2010 It is required to send notice to the shareholders, who have not claimed their dividends, for claiming the same before transferring the amount to IEPF.

When should the company send such notice.

Rasesh

Rasesh (Expert)
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26 February 2010 It is not mandatory under law to send notice to shareholders who have not claimed their dividend. However, as a matter of good corporate practice, companies send such notices voluntarily about three months in advance to such shareholders.

However, I reiterate, it is not mandatory.

Bharat Kapoor

Bharat Kapoor (Querist)
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26 February 2010 As per Section 205A,

1) Dividend which remains unpaid after the expiry of 30 days from the date of declaration should be transferred to “Unpaid Dividend Account” within seven days from the date of expiry of 30 days from the date of declaration.

And as per Section 205A(5)
2)Amount lying in unpaid dividend account which remains unpaid for a period of 7 years from the date of transfer of amount to Unpaid Dividend Account should be transferred to IEPF within 30 days of the expiry of 7 years.

Thefefore, as per my views:
1) Date of transfer to Unpaid dividend account : 28.09.2003
2) Date of transfer to Investor Education Protection Fund: 27th October, 2010.

Please inform me that the above date is correct.

Rasesh

Rasesh (Expert)
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26 February 2010 Agree with the dates given by you.

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