CA Inter P2 · Chapter 7 · Question 4 of 9
Under section 124(5), money in the Unpaid Dividend Account that remains unpaid or unclaimed must be transferred, with interest accrued, to the Investor Education and Protection Fund after a period of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Seven years from the date of transfer to the Unpaid Dividend Account
Explanation
Section 124(5) requires any money in the Unpaid Dividend Account that is unpaid or unclaimed for seven years from the date of transfer to be transferred, with interest accrued, to the IEPF established under section 125. Under section 124(6), shares on which dividend has been unpaid or unclaimed for seven consecutive years are also transferred to the IEPF.
More Declaration and Payment of Dividend MCQs
- Q6Under section 123(6), a company that has failed to comply with the provisions of sections 73 and 74 (acceptance and repayment of deposits)…
- Q7Under section 127, a director is NOT liable for failure to pay a declared dividend within thirty days in which of the following cases?
- Q8Under the provisos to section 123(1), before declaring dividend for the current financial year a company must:
- Q9Under section 126, where an instrument of transfer of shares has been delivered to the company but the transfer has not yet been…
- Q1Which of the following can be a source of dividend under section 123(1)?