Dear All
We are showing unpaid dividend from last seven years in ABC Ltd. Balance sheet but still shareholders did not claim it. pls tell me for how many years unclaimed dividend have to carry forward and how it will set off?
11 Replies
ars
(CS)
(445 Points)
Replied 29 September 2011
pl. refer to sec. 205A and 205C. Post your query, if any, thereafter.
Pankaj Arora
(Learner)
(3134 Points)
Replied 29 September 2011
Sorry actually sir I don’t understand company act language if you could elaborate me it will really gud for me..
TZ hr`3 ��Q did not claim it. pls tell me for how many years unclaimed dividend have to carry forward and how it will set off?
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 29 September 2011
Unclaim dividend can be shown for a period of 7 years only.Now within 30 days from the date it becomes due it should be transferred to the Investors education and protection fund.
CA RICHA BADALIA
(CA,CS)
(1682 Points)
Replied 29 September 2011
and shareholders will not have any further claim on it.It is mandatory to transfer it to IEPF
Pankaj Arora
(Learner)
(3134 Points)
Replied 29 September 2011
After transfer it to investors education and protection fund than again we have to carry forward it in balance sheet.. could you pls tell me the procedure after transferring to investors education and protection fund.
ars
(CS)
(445 Points)
Replied 29 September 2011
Dear Pankaj,
The unclaimed divided has to be kept in the bank account for 7 yrs. from the opening of unclaimed div. a/c.
As a practice, it is the duty of the co. to keep reminding the members to claim the dividend lying as unclaimed.
it should be trasferred to the investor edu. and protection fund of C.G., at the end of the seven yrs.from transfer of funds to the unclaimed div. account. i.e. 30+7 =37 days from the dt. of AGM in which it was declared.
e.g. if the AGM is held on 30th July of a yr. then within 5 days the co. need to fund the account i.e. by 4th august ( assuming all r working days) there after the co. has to pay the div. in 30 days, from the dt. of AGM. The co. need to transfer the balance fund in the next 7 days to a new a/c called unclaimed dividend a/c of..........
This a/c shall be kept as such for seven yrs. from the dt.of such trf. Any valid claim from investor need to be paid there from till reaching the dt. of end of 7 yrs. Within 30 days of completion of 7 yrs, the amt. need to be transferred to the said a/c of C.G. thru prescribed form of MCA.
ars
(CS)
(445 Points)
Replied 29 September 2011
It is mandtory to trf. to investor edu. fund, hence, no question of c/f to balance sheet. once trf. the amt. vanishes from the books of the Co.
ARUN KUMAR
(Financial Consultant )
(992 Points)
Replied 29 September 2011
now you can transfer ti investor protection & education fund as per sec. 205
Ashish Pillai
(ACA CMA(Grad) CS (Licentiate))
(79 Points)
Replied 29 September 2011
I agree with Richa
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 29 September 2011
Unclaim dividend can be shown for a period of 7 years only.Now within 30 days from the date it becomes due it should be transferred to the Investors education and protection fund.
It is mandtory to trf. to investor edu. fund, hence, no question of c/f to balance sheet. once trf. the amt. vanishes from the books of the Co.
Right said, Richa
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