Consequences of non transfer of unpaid declared dividend

Saranya (Trainee) (39 Points)

13 January 2011  

Under Section 205A a dividend which has not been paid or claimed within  30 days from the date of declaration must be transferred within 7 days from the date of expiry of the said period of 30 days. every company must transfer the balance of the Dividend account to a special account called "Unpaid Dividend account".

What are the consequences to be faced if the company does not transfer the Unpaid declared dividend to Unpaid Dividend account? Whether their is any measure to be followed in the following case?