Section 124(3) and 124(7) of companies act 2013

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2018 If a company fails to transfer the unpaid or unclaimed dividend to Unpaid Dividend Account within the time stipulated therein then the consequences under both 124(3)and 124(7) will apply or only 124(3) applies?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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24 February 2018 Both will apply, because the former is a compensatory payment(interest)
whereas the the latter is fine for punishment for the non compliance of
the requirements of section 124.