<h1>Companies Must Distribute Dividends in 30 Days or Face Penalties; Unpaid Dividends Go to IEPF After 7 Years.</h1> The Companies Act, 1956 mandates companies to distribute declared dividends within 30 days and hold unpaid dividends in special accounts for up to seven years, after which they must transfer the funds to the Investor Education and Protection Fund (IEPF). Non-compliance is punishable. To protect investors, a website-based disclosure framework has been established. The Companies Bill, 2011 retains these provisions and allows refunds from IEPF. Between 2009 and 2012, over 4,388 lakh INR of unclaimed dividends, deposits, and debentures were transferred to the government.