BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Companies declare dividends based on their financial performances/results. However, dividends at times remain unclaimed even after considerable length of time. What happens to such amounts?
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Respective companies take it to their reserve account
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The unclaimed amount is distributed among the other share holders the next year
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Transferred to the Consolidated Fund of India
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Transferred to Investors Education and Protection Fund
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Explanation:
Detailed explanation-1: -In case of any default in transferring the amount, the company shall be liable to pay interest on the amount as has not been transferred. The amount remaining unpaid or unclaimed along with interest accrued thereon for seven years shall be transferred to Investor Education and Protection Fund.
Detailed explanation-2: -The information regarding dividend remaining unpaid to the shareholders are mentioned below: The dividend shall be transferred to Investor Education and Protection Fund after the date mentioned against each year. Thereafter there shall be no claim on the said unclaimed dividend.
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