Transfer of unpaid dividend ‑ 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.

Clarification on Section 205A: Unpaid Dividends Differentiation Between 'Not Paid' and 'Warrant Not Posted' Explained.

The circular clarifies the interpretation of sub-section (1) of section 205A concerning unpaid dividends. It distinguishes between the expressions 'has not been paid' and 'warrant in respect thereof has not been posted,' indicating they refer to separate situations. The provisions do not apply if a company posts the dividend warrant within 42 days of the dividend declaration, but the warrant remains unencashed within seven days after this period. This distinction helps determine the applicability of the section regarding the transfer of unpaid dividends.