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.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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. It is pointed out that there seems to be some misunderstanding as to whether Circular No. 7/77, dated 4-6-1977 in any way supersedes Circular No. 28/76, dated 1‑8‑1976. In this connection, a perusal of the circulars (printed as Clarificati .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... there are two methods of payment, namely (i) payment by‑cash, and (ii) payment by posting warrant. The company could post warrants even on the 42nd day and such warrants may not be cashed within the next 7 days. The question arose as to whether the company is required to transfer to the unpaid dividend account to be opened in terms of sub‑section (1) even those amounts which are prese .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ity is over. You will appreciate that the intention while enacting section 205A was that once the dividend is declared, it is the property of the shareholders and it should be paid to them promptly within 42 days as is required under section 207, and thereafter to the extent it remains unpaid or unclaimed this money should be transferred to the special account. It was hence clarified in Circular N .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X