A company has declared a dividend, but part of it has not been paid or claimed within 30 days of declaration. Under section 124(1) of the Companies Act, 2013, where must the company transfer that…

Section 124(1) requires the unpaid or unclaimed amount to be transferred, within seven days after the thirty-day period, to a special account opened in a scheduled bank called the Unpaid Dividend Account. Transfer to the Investor Education and Protection Fund comes only after the amount remains unclaimed for seven years (section 124(5)); the General Revenue Account was the destination under the Companies Act, 1956 before the Fund was created.