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Question
Justify the following statement:
Unpaid dividends cannot be used by the company.
Solution
- An unpaid dividend is a dividend declared by the company but not paid to or claimed by a shareholder within 30 days of its declaration.
- The total amount of unpaid dividends should be transferred to the 'Unpaid Dividend Account.'
- Any amount remaining unpaid/unclaimed in a company's Unpaid Dividend Account after 7 years will be transferred to the 'Investors Education and Protection Fund.
- Unpaid dividends cannot be used by the company. The only person who can claim money must follow certain procedures. As a result, it is correct to state that unpaid dividends cannot be used by the company.
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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.
State whether the following statement is true or false.
Dividend cannot be paid out of capital.
Complete the sentence.
Dividend must be paid in______.
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?
Arrange in Proper Order:
- Transfer to Dividend Account
- Transfer to IEPF
- Transfer to Unpaid Dividend Account
Arrange in Proper Order:
- Decision on Rate of Dividend
- Transfer to IEPF
- Payment of Dividend.
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.
Justify the following statement.
Unpaid dividend cannot be used by the company.
Unpaid/unclaimed dividends shall be transferred to Investor Education and Protection fund on expiry of ______ years.
Justify the following statement.
Unpaid/Unclaimed Dividend is governed by some rules.
