Notice to shareholders on unpaid dividend and related shares liable for transfer to IEPF
Company has shared a specimen copy of the notice sent to shareholders on unpaid/unclaimed dividend.
- Claim deadline
- on or before 05.01.2027
- Unclaimed period
- dividend was not encashed for seven continuous years
- Statutory provision
- Section 124(6)
Notice to shareholders on unclaimed dividend
The company has enclosed a specimen copy of the notice sent to shareholders to claim their unpaid and unclaimed dividend, which is otherwise liable to be transferred to the Investor Education and Protection Fund (IEPF).
Who it concerns
- Shareholders who, as per the company's records, have not encashed their dividend for seven continuous years.
- Under Section 124(5) of the Companies Act, 2013, all unpaid or unclaimed dividend for a period of seven years is required to be transferred by the company to the IEPF.
- Under Section 124(6), all shares in respect of which unpaid or unclaimed dividend has been transferred to the IEPF shall also be transferred to the IEPF.
What shareholders are asked to do
- Claim the unpaid dividend on or before 05.01.2027.
- Send to the company, or to M/s Bigshare Services Private Limited, the Registrar and Transfer Agents, these documents: the enclosed Letter of Undertaking duly filled and signed, a self-attested copy of PAN card and address proof, a copy of a cancelled cheque, and a signature duly attested by the banker in the attached format.
- The bank's sign verification format states that the account holder has held the bank account for more than the last six months and that the specimen signature matches the one registered with the bank.
If no reply comes before 05.01.2027
- The company shall, to comply with the Rules, transfer the shares to the IEPF Account as per the procedure stipulated in the Rules, without any further notice.
- No claim shall lie against the company in respect of the unclaimed dividend amount transferred to the IEPF Authority.
Claiming later from the IEPF
- A shareholder can claim the unclaimed dividend amount from the IEPF Authority by applying in Form IEPF-5 online and sending the signed physical copy, along with the documents listed in that form, to the company at its registered office or to the RTA for verification of the claim.
- The company will send a verification report to the IEPF Authority for refund of the unclaimed dividend amount and transfer of the unclaimed dividend back to the credit of the shareholder.
Disclosure stated in the notice
- Full details of the unpaid or unclaimed dividend will be uploaded on the company's website and on the website of the Ministry of Corporate Affairs before the transfer to the IEPF.
- The complete list of all cases falling due for transfer to the IEPF is attached to the notice.
Angle for investors
- The communication is a statutory notice on dividend that has stayed unpaid or unclaimed. For a shareholder in this situation, it sets a time-bound action point before 05.01.2027, and where the dividend is unclaimed, both the dividend and the related shares are in scope for transfer. Any claim made after the transfer runs through the IEPF Authority.
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More numbers
- Period after which unpaid or unclaimed dividend moves to IEPFseven years
- Non-encashment period cited in the noticeseven continuous years
- Unpaid/unclaimed dividend period under the Rulesseven consecutive years
- Minimum bank account holding period for sign verificationsix months
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