Section 124 — Unpaid Dividend Account

(1) Where a dividend has been declared by a company but has not
been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the
payment of the dividend, the company shall, within seve n days from the date of expiry of the said period
of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account

1. The proviso ins. by Act 1 of 2018, s. 32 (w.e.f. 9-2-2018).
2. Subs. by s. 32, ibid., for “transferred by the company to the reserves” (w.e.f. 9-2-2018).
3. The Proviso ins. by Act 21 of 2015, s. 10 (w.e.f. 29-5-2015).
4. Subs. by Act 1 of 2018, s. 32, for sub-section (3) (w.e.f. 9-2-2018).

to be opened by the company in that behalf in any scheduled bank to be called the Unpaid Dividend
Account.
(2) The company shall, within a period of ninety days of making any transfer of an amount under sub-
section (1) to the Unpaid Dividend Account, prepare a statement containing the names, their last known
addresses and the unpaid dividend to be paid to each person and place it on the website of the company, if
any, and also on any other website approved by the Central Government for this purpose, in such form,
manner and other particulars as may be prescribed.
(3) If any default is made in transfer ring the total amount referred to in sub -section (1) or any part
thereof to the Unpaid Dividend Account of the company, it shall pay, from the date of such default, interest
on so much of the amount as has not been transferred to the said account, at the rate of twelve per cent. per
annum and the interest accruing on such amount shall ensure to the benefit of the members of the company
in proportion to the amount remaining unpaid to them.
(4) Any person claiming to be entitled to any money transferred under sub-section (1) to the Unpaid
Dividend Account of the company may apply to the company for payment of the money claimed.
(5) Any money transferred to the Unpaid Dividend Account of a company in pursuance of this section
which remains unpaid or unclaimed f or a period of seven years from the date of such transfer shall be
transferred by the company along with interest accrued, if any, thereon to the Fund established under
sub-section (1) of section 125 and the company shall send a statement in the prescribed form of the details
of such transfer to the authority which administers the said Fund and that authority shall issue a receipt to
the company as evidence of such transfer.
(6) All shares in respect of which 1[dividend has not been paid or claimed for seven consecutive years
or more shall be] transferred by the company in the name of Investor Education and Protection Fund along
with a statement containing such details as may be prescribed:
Provided that any claimant of shares transferred above shall be entitled to claim the transfer of shares
from Investor Education and Protection Fund in accordance with such procedure and on submission of such
documents as may be prescribed.
2[Explanation.— For the removal of doubts, it is hereby clarified that in c ase any dividend is paid or
claimed for any year during the said period of seven consecutive years, the share shall not be transferred to
Investor Education and Protection Fund.]