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To which fund must a company transfer amounts that remain unpaid or unclaimed for seven years from transfer to the Unpaid Dividend Account?

Question and options

To which fund must a company transfer amounts that remain unpaid or unclaimed for seven years from transfer to the Unpaid Dividend Account?

  1. Deposit Insurance Fund

  2. Consolidated Fund of India

  3. Investor Education and Protection Fund

  4. Securities and Exchange Board of India General Fund

Answer and explanation

Correct answer: C - Investor Education and Protection Fund

Section 124(5) of the Companies Act, 2013 requires money left unpaid or unclaimed for seven years from its transfer to the Unpaid Dividend Account, with any interest accrued, to be moved to the Investor Education and Protection Fund set up under section 125. The Consolidated Fund of India does not receive such amounts, and the Deposit Insurance Fund protects bank depositors, not shareholders.

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