Unpaid Dividend Account

In general, a dividend is a portion of a company’s earnings that is delivered to its shareholders. A dividend is defined as a specified proportion of profit from a company’s net profit for a financial year that is not held in the firm and has been distributed among the company’s shareholders under Section 2 (35) of the Companies Act of 2013. Provisions of Section 124 Section 124 of the companies Act, 2013, discusses the unpaid dividend account: Sec. 124. (1) Where a dividend has been declared by a company but has not been paid or claimed within thirty days from the date of the declaration to any shareholder entitled to the payment of the dividend, the company shall, within seven days from the date of expiry of the said period of thirty days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened by the company in that behalf in any scheduled bank to be called the Unpaid Dividend Account.