Unpaid dividend

Hello everyone......

My query is related to Unpaid dividend. As per the company law the unpaid dividend is to to transferred to Unpaid dividend account in a separate bank account in a schedule bank within in 7 days (If dividend declared is not claimed within 30 days of declaration). In case of default the company is required to pay interest @ 12% on the amount to be transfered. Now my question is whether this interest is also distributed to the shareholders.If yes then in what ratio or manner/ no then what is the treatment...

Replies (1)

According to section 205A of the companies act interest accruing on such amount shall ensure to the benefit of the members of the company in proportion to the amount remaining unpaid to them.

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