Hi,
As per the provisions of Companies Act unclaimed dividend should be transferred to a Special Account within seven days of the date of expiry of thirty days from the date of declaration of dividend. Is it necessary to open separate bank account for each year? or is opening a single unclaimed account for all the years enough?
As per my opinion opening a single unclaimed account for all the years is enough.
The company should maintain the details of unpaid or unclaimed Dividend and reconcile the amounts thereof with the concerned bankers, periodically.
Views of other members solicited.
Dear Pradeep,
Under Section 205A where a dividend has been declared by a company but has not been paid, or claimed within 30 days from the date of the declaration, the company shall within seven days from the date of expery of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that behalf to be called Unpaid Dividen Account of .............. Company Limited / Company (Private) Limited.
Thus, each year a separate account to be opened by the company to be called "XYZ Limited Unpaid Dividend Account for the Year ......"
Practically, open an separate bank account for declaration of dividend each year and if any dividend remain unclaimed or unpaid after 30 days of the date of declartion, change the nominclature of the said account on the 37th day of declaration of dividend.
CAclubindia
