Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Redemption of Pref.Shares

Mukesh Darwani (Company Secretary) (79 Points)

30 September 2009

What should a company do to its upaid/unclaimed amount after redemption of share.

Reply
Follow
Share

7 Replies

(Guest)

Company should have to keep the unpaid/unclaimed dividednd with it for compulsorily 7 years.

after that only Company can ransfer it to Investor Education & Protection Fund.

If You need further clarification than contact me.

Ankur Shah (Practicing Company Secretary)

"Guru Gautam" Bungalow, Inside Parshwa Tower,

Nr. Shyamal Cross Road, Satellite,

Ahmedabad - 15

Contact:+91-9427633901

Email:ankurjewel @ gmail.com

Blog:csankur.blogspot.com

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Mukesh Darwani (Company Secretary) (79 Points)
Replied 01 October 2009

Originally posted by :Ankur Shah (PCS)

Sir, I am not asking about the upaid dividend. I am asking about the upaid\unclaimed amout after redemption of pref. shares.

Regards,

Mukesh Darwani

(Guest)

Yes, I know.

But, redemption of prefrence shares & Unclaimed dividend are not related with each other in any way.

So, that redemption doesn't affect the provision related to Unclaimed Dividend.

And Unclaimed/unpaid dividend should be deposited after 7 years to Investor Education Protection Fund. Till then you have to keep the dividend with the company.

Mukesh Darwani (Company Secretary) (79 Points)
Replied 05 October 2009

Sir, In way back in 2003, we invited pref. shareholders to surrrender their Share Certificates and claim the amount of redemption. The shareholders did so. But many of them did not due to reasons best known to them. The unpaid amt. is kept/remained with the bank in unpaid pref. share a/c.

Now till what time we should keep that aforesaid unpaid amount in the above bank account?

Regards,

Mukesh.

(Guest)

Once again sent the mail to the shareholders, who didn't have surrenderd the share certificate.

As IEPF Section is not applicable to your query:

(1) The Central Government shall establish a fund to be called the Investor Education and Protection Fund (hereafter in this section referred to as the "Fund").

(2) There shall be credited to the Fund the following amounts, namely :-

(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

(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

Your Company has redeemd the Prefrence Share and not the Deposit/Debenture

Howevr, Write the letter to

For queries relating IEPF, please write to:

Shri B.P. Bimal
Under Secretary
Ministry of Corporate Affairs
Room No. 529, ‘A’ Wing, 5th Floor
Shastri Bhawan
Dr. Rajendra Prasad Road
New Delhi-110001