Manish, a shareholder, has not claimed dividends declared by his company for the last 8 years, for various reasons. Advise him on whether, and how,…

Provisions of the Law: Under Section 124 of the Companies Act, 2013, a dividend declared but not paid or claimed within 30 days of declaration must be transferred by the company, within 7 days of the expiry of that period, to a special 'Unpaid Dividend Account' in a scheduled bank. Any amount remaining unclaimed for 7 years from such transfer must then be transferred, with accrued interest, to the Investor Education and Protection Fund (IEPF) under section 125. Under section 124(6), the corresponding shares must also be transferred to the IEPF, along with the prescribed statement, once dividends have remained unclaimed for 7 consecutive years. Analysis and Conclusion: Since Manish has not claimed his dividends for 8 years, on the expiry of the 7th consecutive year his shares along with the unclaimed dividends, would already have been transferred by the company to the IEPF. Manish should therefore apply to the IEPF Authority to claim his shares and dividends, following the prescribed procedure and submitting the required documents.