Thursday, March 31, 2016

DETAILS OF UNPAID OR UNCLAIMED DIVIDEND



                 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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