Transfer of dividend to unpaid dividend account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 October 2013 Can anyone pls guide that after 30 days of declaration of dividend, the dividend remaining unclaimed has to be transferred to an unpaid dividend account,

now, if a shareholder receives a cheque but submits in bank for clearing on 40th day of receiving it will face bouncing due to change in account?

how to deal

Ajay Mishra

Ajay Mishra (Expert)
Follow

24 October 2013 You can claim your dividend for with in 7 years from the end of such 30 days.

You send bounce check with company and request for re issue of DD in lieu of such cheque.

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2013 Sir, i understand. but what is the purpose of shifting the amount to another account so immediately?

will bouncing of cheques and reissue will not increase the work of the company and the shareholders?

Upgrade to CAclubindia Pro. Subscribe Now!

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
Follow

25 October 2013 No, the cheque will not be bounced.

After 30 days of declaration of the Dividend the nomenclature of the dividend account is being changed to Unpaid Dividend account. So the warrants / cheques presented to the bank beaing the account number will get passed and the shareholder get his dividend.

CS Ankur Srivastava

CS Ankur Srivastava (Expert)
Follow

25 October 2013 If the instrument is valid (upto 3 months) it will not be bounced and the shareholder will get his payment of dividend.

Because only the name of the account will change and not the account number.

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2013 thank you ankur Sir.

sir, is it a practice in listed companies also of changing the nomenclature?

because my company has declared for the first time and act says 'company has to transfer to a special account opened by the company'

pls guide

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2013 Ankur Sir, can i request your advice on the last point please?