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    Question

    What steps must a company take within ninety days of transferring an unpaid dividend amount to the Unpaid Dividend Account?

    A The company must send individual notices to all shareholders with unpaid dividends and also publish a statement in the local newspapers Correct Answer Incorrect Answer
    B The company must prepare a statement containing the names, last known addresses, and the unpaid dividend amount for each person, and send this information to the Central Government Correct Answer Incorrect Answer
    C The company must prepare a statement with the names, last known addresses, and unpaid dividend amounts, and place this statement on the company's website and any other website approved by the Central Government, in the prescribed form and manner Correct Answer Incorrect Answer
    D The company must prepare a statement with the names and unpaid dividend amounts, but it is not required to publish this information online Correct Answer Incorrect Answer
    E The company must refund the unpaid dividends to the company's reserve account and prepare a detailed report for the shareholders' meeting Correct Answer Incorrect Answer

    Solution

    Companies Act Section 124. Unpaid Dividend Account: (2) The company shall, within a period of ninety days of making any transfer of an amount under sub-section (1) to the Unpaid Dividend Account, prepare a statement containing the names, their last known addresses and the unpaid dividend to be paid to each person and place it on the web-site of the company, if any, and also on any other web-site approved by the Central Government for this purpose, in such form, manner and other particulars as may be prescribed.

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