Dividend account

A company transferred to the dividend account the amount of dividend transferred..... Apart from the actual amount of dividend paid the company transferred some excess amount to the account for bank charges on ad hoc basis. At the end of the year all the dividend were paid and no more amount remains to be paid. But them a portion of the amount transferred to the account for bank charges remains.

 

1. What should the company do with this account and the amount in the account.?

2. Can a company transfer any amount apart from dividend payable to the dividend account?

 

Please explain through  relevant  section , act, courtt ruling etc.

Replies (2)

All companies are required to pay bank charges apart from the dividend amount and the amount transfered if that is access to the said sum for devidend can be retransfered to companies any other bank account there is no problem, bcoz only unpaid devidend amount is transfered to UNPAID DIVIDEND ACCOUNT and only UNPAID AND UNCLAIMED DIVIDEND amount is required to be transfered to IEPF after 7 yrs.

 

Other members views solicited

Agree with Vivek

 

Regards
 

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