CA Inter P2 · Chapter 7 · Question 3 of 9
A dividend declared by Sapphire Ltd has not been paid or claimed within thirty days of declaration. Under section 124(1), the unpaid amount must be transferred to the Unpaid Dividend Account within:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Seven days from the expiry of the thirty days
Explanation
Section 124(1) requires a company to transfer the total unpaid or unclaimed dividend to a special account called the Unpaid Dividend Account. The account must be opened in a scheduled bank within seven days from the expiry of the thirty-day period. Under section 124(2), a statement of the unpaid amounts must be placed on the company's website within ninety days of the transfer.
More Declaration and Payment of Dividend MCQs
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- Q7Under section 127, a director is NOT liable for failure to pay a declared dividend within thirty days in which of the following cases?
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