CA CS executive programme student
151 Points
Joined October 2008
the dividends delared by the company should normally be paid with in 30days of such declaration. the procedure in relation to unpaid/ unclaimed Dividends is laid down in sec.205A
Trasfer to special account : where a dividends declared by a company has not been paid or claimed within 30days from the date of declaration , to any shareholder entitled to tha payment of dividend. the company shall transfer the total amount of unpaid dividend / unclaimed dividend to a special Account opened in this Behalf in any scheduled Bank.
This transefer shoudl be made within 7days from the day of expirt of said period of 30days
This special account shall be called as " Unpaid Dividend Account of ..................... Copany Ltd / Company pvt ltd.
" Dividend which remains unpaid " means any dividend the warrant in respect thereof has not been encashed or which has othewise not paid or claimed