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Question
Justify the following statement:
Unpaid dividends cannot be used by the company.
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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.
Dividend cannot be paid out of capital.
Find the odd one.
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Dividend must be paid in______.
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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.
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Unpaid Dividend Account
Justify the following statement.
Unpaid dividend cannot be used by 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/Unclaimed Dividend is governed by some rules.
