Iepf rules

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2012 Dear Sir,

Under the new IEPF Rules, if a Company does not have any dividend history, whether the Company is required to file Form 5 INV.

Awaiting for kind reply.

Regards,

Pankaj

Guest

Guest (Expert)

28 July 2012 The Companies are required to file Form No. 5 INV for furnishing information on unpaid/unclaimed amounts lying with companies as on the date of Annual General Meeting. therefore only those companies which have dividend history will be required to do so.

Regards

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 July 2012 You have to file eForm 5INV though company has not declare any dividend so far. Every company must file eForm 5INV containing the information of unclaimed and unpaid amounts as referred to in subsection (2) of section 205C of the Companies Act, 1956.

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Guest

Guest (Expert)

30 July 2012 Only those companies which have to file statement of unclaimed and unpaid amounts is required to file form 5INV.

Those companies which declare dividend but no amount is outstanding as unclaimed and unpaid dividend are not required to file form 5INV because they have not transferred such amount to IEPF.

Regards

Guest

Guest (Expert)

30 July 2012 Section 205A of the Companies Act, 1956 requires companies to transfer the amount of unpaid or unclaimed dividend to a special account to be opened by the company in any scheduled bank, to be called as “Unpaid Dividend Account of Company Limited/Company(Private) Limited, when it has not been paid within 30 days from the date of declaration.

Now it is obligatory for the companies to disclose every year, the amount of unpaid and unclaimed dividend, in a separate eform, called as Form 5-INV.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 July 2012 Kindly note that following amounts apart from amounts in the unpaid-dividend accounts of the company, which have remained unclaimed or unpaid for a period of 7 years from the date they became due for payments, to be credited to the IEPF

1. Application moneys received by companies for allotment and due for refund

2. matured deposite with companies

3. matured debentures with companies

4. the interest accrued on the amount referred in (1) to (3)

Thus even if companies is not having dividend history/amount in unpaid dividend account shall require to file form 5INV if they are falling in above point (1) to (4)

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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30 July 2012 The view of Ms. Neha Jain is correct. The company having unpaid / unclaimed moneys as referred to in section 205C(2) of the companies Act, 1956 are only required to disclose the unpaid and unclaimed amount.

In case there is not unpaid or unclaimed money, nothing is to be done.

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CS Ankur Srivastava

CS Ankur Srivastava (Expert)
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30 July 2012 In case the Company is having any money as referred under section 205C(2) unpaid and unclaimed then only form 5 INV is required to be filed.

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Ajay Mishra

Ajay Mishra (Expert)
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30 July 2012 Dear All,

MCA has issued Notification, on the basis of which company is required to file e-Form-5INV within 90 days after holding of AGM.

As per my Notification, it require that such form is required to be filed for 7 years as per section 205C (2) of the Companies Act, 1956. If your company has not declared any dividend then how you calculate 7 years under that section. Form 5INV is not required to be filed by any company which has not any dividend history or track record.

Please correct, if I am wrong.

Regards

Ajay Mishra

Ajay Mishra (Expert)
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CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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30 July 2012 every company has to file form 5INV about their balances in
(a) amounts in the unpaid dividend accounts of companies;

(b) the application moneys received by companies for allotment of any securities and due for refund;

(c) matured deposits with companies;

(d) matured debentures with companies;

(e) the interest accrued on the amounts referred to in clauses (a) to (d);

(f) grants and donations given to the Fund by the Central Government, State Governments, companies or any other institutions for the purposes of the Fund; and

(g) the interest or other income received out of the investments made from the Fund:

Provided that no such amounts referred to in clauses (a) to (d) shall form part of the Fund unless such amounts have remained unclaimed and unpaid for a period of seven years from the date they became due for payment.

It is now clear that every company has to file form 5 INV mentioning the balances available in the above heads detailed from (a) to (h).