Question
Under Section 205-A, unpaid dividends shall be
transferred to Special Dividend's Account after the expiry period of declaration of such dividend. What is the period of declaration till expiry of dividend?Solution
The answer is 30 days. Section 205-A of the Companies Act, 1956 states that where a dividend has been declared by a company but has not been paid or claimed within 30 days from the date of declaration, the company shall, within seven days from the expiry of the said period of 30 days, transfer the total amount of dividend which remains unpaid to a special account to be opened by the company in that behalf in any scheduled bank, to be called "Unpaid Dividend Account of . . . Company Limited/Company (Private) Limited". Therefore, the period of declaration till expiry of dividend is 30 days. Â
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