Procedure to Claim unpaid dividend by shareholders when the shares have not been transferred to Investor Education and Protection Fund (IEPF)


Overview: when the shareholder fails to claim his/ her dividend on share for a long period of time (around 7 years) then he/she can still make an application to the RTA and can still be able to claim the dividend which has remained unpaid.

 

Purpose: The provision of the Companies Act 2013 require the company to transfer the unpaid dividend to IEPF established by cenral government after the expiry of a period of 7 years. The purpose of this article is to serve as a general guide for claim such unpaid dividend by the shareholder from the company.

Areas of Application of Law: Companies act 2013, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017

Process: the shareholder can claim dividend from of the last seven years which has not been recived by him/ her and the dividend which has not been transferred to the Investor Education & Protection Fund (IEPF) which has been established by the central government in the following manner:

Where the shareholder has the outdated Dividend Warrant or the Demand Draft of the  relevant year in his/ her possession , he/she can send the same to Registrar and Transfer Agents (i.e. RTA) with an application which is in the nature of a letter requesting for reissue of the Dividend Warrant  or the Demand Draft.

 A fresh Dividend Warrant  or the Demand Draft will be issued/ obtained and sent to the shareholder post examination and verification of the claim and documents

Where Dividend Warrant  or the Demand Draft that is pertaining to the previous years is lost or damaged or is simply not available with the shareholder, he /she can claim for this unpaid dividend by applying to the RTA.

The RTA requires certain information and documents which are required to be submitted t it along with the application. These are listed below. The details including the Folio number/Client ID & DP-ID, period for which dividend has not been received have to be given in the application. Further the details regarding signature, address and Bank details of the shareholder must match with the details registered with the company for the reissue to take place.

The RTA will verify and examine the details and particulars furnished and will reissue the demand draft for the unpaid/ unclaimed amount

Please note that the application requesting the reissue of the unpaid/ unclaimed dividend has to be signed by the shareholder only. His signatures must match with the signatures which are available in the records of the company. The reissue request will be processed only after verification of theses signatures for the shares held physically.

Documents required to be submitted: indemnity bond in the prescribed format, master list if shares are held in demat form.

Punishment/Expected Relief: claiming the unpaid dividend for the last seven years

User Comments


×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com