When a company declared dividend it becomes liability of the
company to pay the dividend to their respective shareholders. According to the
provision of the companies act a company should open a SEPARATE BANK ACCOUNT in
a schedule bank and deposited the amount of dividend to such account within
five days from the date of declaration of dividend. If dividend is unclaimed or
unpaid for thirty days the company should within next seven days transfer to
UNPAID DIVIDEND ACCOUNT and if such amount shall remain seven years in that
account after completion of such period the fund should be transferred to
INVESTER EDUCATION AND PROTECTION FUND.
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