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Study the following case/situation and express your opinion: GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20. - Secretarial Practice

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Question

Study the following case/situation and express your opinion:

GOLD Co. Ltd. declares a dividend of ₹ 10/- per share for F.Y. 2019-20.

  1. Is the company under default, if the dividend was not paid within 30 days of its declaration?
  2. Is the company right in transferring the unpaid dividend to its Debenture Reserve Account?
  3. Does the company have to transfer the amount of unpaid dividends to IEPF after 30 days?
Case Study
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Solution

  1. Yes, the company is under default if it fails to pay the declared dividend within 30 days of its declaration.
  2. No, the company is not right in transferring unpaid dividends to its Debenture Reserve Account.
  3. No, the company does not have to transfer unpaid dividends to the IEPF after 30 days; such transfer is required after seven years of unpaid status.
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Legal Provisions on Dividend
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2023-2024 (March) Official
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