Question
Under Section 124(6), shares in respect of which
dividend has not been paid or claimed for ________ consecutive years or more shall be transferred by the company in the name of the Investor Education and Protection Fund (IEPF).Solution
If the dividend remains unpaid/unclaimed for 7 consecutive years , the underlying shares, along with the accumulated dividend in the Unpaid Dividend Account, must be transferred to the IEPF. However, if the beneficial owner later claims the shares, they can apply to the IEPF Authority for a refund.
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