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Question
Justify the following statement.
Unpaid dividend cannot be used by the company.
Solution
- The dividend which is declared by the company but has not been paid by it or claimed by a shareholder within 30 days of its declaration is termed as Unpaid and Unclaimed Dividend.
- The company has to transfer it to an Unpaid Dividend Account opened in a scheduled bank within 37 days from the declaration of dividend.
- The company has to put up the details of the unpaid dividend on a website within 90 days of the transfer of the amount in the ‘Unpaid Dividend Account’.
- Any amount in the Unpaid Dividend Account that remains unpaid/unclaimed for a period of 7 years should be transferred by the company to the ‘Investors Education and Protection Fund’ (IEPF).
- Thus, a company cannot use the Unpaid Dividend.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
IEPF is created by ______________ where unpaid dividend is transferred by company.
Find the odd one.
Complete the sentence.
Dividend cannot be paid out of ______.
Select the suitable option for the following.
____________ Dividend declared but not paid/claimed
Answer in one sentence.
State the time within which Unpaid Dividend be transferred to unpaid dividend Account?
Correct the underlined word and rewrite the following sentence.
Dividend is paid to creditors.
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The Dividend to be paid should be transferred to Dividend A/c within 30 days of its declaration.
Explain the following term/concept.
Unpaid Dividend
Explain the following term/concept.
Unpaid Dividend Account
Justify the following statement.
Dividend is paid out of profits of the company.
Correct the underlined word and rewrite the following sentence.
Dividend is paid to creditors.
Answer in brief.
Discuss the rules governing unpaid and unclaimed dividend.
Justify the following statement:
Unpaid dividends cannot be used by the company.
Justify the following statement.
Unpaid/Unclaimed Dividend is governed by some rules.
