Transfer of unpaid dividend ‑ Scope of the section explained in the context of expressions “has not been paid” and “warrant in respect thereof has not been posted” used therein. - Companies Law - Circular: No. 28/76

Circular: No. 28/76 [6/8/76 ‑ CL ‑ XIV and 8/30(205A)/75 ‑ CL ‑ V], dated 1 ‑ 9 ‑ 1976. Subject:- Transfer of unpaid dividend ‑ Scope of the section explained in the context of expressions has not been paid and warrant in respect thereof has not been posted used therein. The Department has re‑examined the scope of the provisions of sub-section (1) of section 205A. The Department has been advised that the two expressions has not been paid and the warrant in respect thereof has not been posted used therein are used to denote two separate contingencies and hence the provisions thereof do not apply to a case where company has posted the dividend warrant within forty‑two days from the date of declaration of dividend but the dividend warrant has not been encashed within the period of seven days after the expiry of the forty-second day.