Write short note on Provisions regarding unclaimed/unpaid dividend :
Provisions regarding unclaimed/unpaid dividend : (1) The dividend which has not been paid to the shareholders within 30 days of its declaration is called 'Unpaid Dividend.' The amount of final dividend and interim dividend may remain unpaid/unclaimed. This dividend is transferred in a separate account called 'Unpaid Dividend Account of...........Company Limited/Company Private Limited in any scheduled bank within 7 days after the expiry of 30 days of declaration of dividend. (2) Penal Interest—If a company fails to deposit the amount of unclaimed dividend into a separate bank account within stipulated time period, it is liable to pay interest on the amount not transferred at the rate of 12% p.a. Such amount of interest is paid to the members who have not been paid dividends in proportion to their dues. (3) Transfer to Investor's Education and Protection Fund—According to the Provision of Section 205 (A) of the Companies Act, 1956, if the amount of unpaid dividend remains in the account for 7 years from the date of transfer to this account, a company is required to transfer such amount together with interest due on it to 'Investors' Education and Protection Fund, as established by the Central Government. (4) Payment of Unpaid/Unclaimed Dividend—Any person entitled to any amount transferred in IEPF is required to make an application for refund to the authority or committee appointed by the Central Govt. (5) Penalty—If any company commits default in compliance of above requirements, every officer of such company responsible for this lapse shall be punishable with fine up to ` 5,000 per day during which the default continues.