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    Question

    What must a company do if a declared dividend has not been paid or claimed within thirty days from the date of declaration?

    A Transfer the unpaid or unclaimed dividend amount to the general reserves of the company within seven days from the expiry of the thirty-day period Correct Answer Incorrect Answer
    B Return the unpaid or unclaimed dividend amount to the company's capital account within seven days from the expiry of the thirty-day period Correct Answer Incorrect Answer
    C Transfer the unpaid or unclaimed dividend amount to the Unpaid Dividend Account in any scheduled bank within seven days from the expiry of the thirty-day period Correct Answer Incorrect Answer
    D Distribute the unpaid or unclaimed dividend amount equally among the remaining shareholders within seven days from the expiry of the thirty-day period Correct Answer Incorrect Answer
    E Transfer the unpaid or unclaimed dividend amount to a government account within seven days from the expiry of the thirty-day period Correct Answer Incorrect Answer

    Solution

    Companies Act Section 124.Unpaid Dividend Account: (1) Where a dividend  has been declared by a company  but has not been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that behalf in any scheduled bank to be called the Unpaid Dividend Account.

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