The Companies Act, 2013 provides that the amount of dividend remained unpaid/unclaimed on expiry of 30 days from the date of declaration of dividend…

CA Intermediate · Corporate and Other Laws · MTP · September 2025
The Companies Act, 2013 provides that the amount of dividend remained unpaid/unclaimed on expiry of 30 days from the date of declaration of dividend shall be transferred to unpaid dividend account within 7 days from the date of expiry of such period of 30 days. If the expiry date of such 30 days is 30.10.2024, decide the last date on or before which the unpaid/unclaimed dividend amount shall be required to be transferred to a separate bank account in the light of the relevant provisions of the General Clauses Act, 1897?

Suggested Answer and Working Notes:

Section 9 of the General Clauses Act, 1897 provides that, for computation of time, in any legislation or regulation, it shall be sufficient, for the purpose of excluding the first in a series of days or any other period of time to use the word “from” and for the purpose of including the last in a series of days or any other period of time, to use the word "to". In the given case, the company is required to transfer the unpaid/unclaimed dividend to the Unpaid Dividend Account within 7 days. Accordingly, 30th October, 2024 (the date of declaration) shall be excluded, and 6th November, 2024 shall be included in the computation. Therefore, the period shall be from 31st October, 2024 to 6th November, 2024 (both days inclusive).

Topics: The General Clauses Act, 1897

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