Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

How " Unclaimed Dividend" is treated in the books of a Public Limited Company having its shares listed in a Recognized Stock Exchange?

user-image
Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/08/15
ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

Dividends that have not been claimed

For shareholders who are entitled to receive dividends, and holders of certificates who have not received their dues result of their visit to the banks of their own or as a result of an error in their addresses or account numbers, or as a result of lack of lead, depositing their testimony in their portfolios do not drop their rights the company and they can submit a request to recover these dues

nour ibrahim
by nour ibrahim , محاسب ومراجع قانونى , مستقل

  Please clarify more

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

agree with you

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

  The payment by the board of any unclaimed dividend or other monies payable on or in respect of a share into a separate account shall not constitute the company a trustee in respect thereof. All unclaimed dividends or other moneys payable on or in respect of a share may be invested or otherwise made use of by the board for the benefit of the company until claimed; but so that any such dividend unclaimed after a period of12 years from the date such dividend first became due for payment shall be forfeited and shall revert to the company and any monies payable on or in respect of a fractional interest in a share remaining unclaimed after a period of12 years from the date upon which the same first became due for payment, shall be forfeited and shall revert to the company. In the case of a dividend resolved to be paid under article132, the above period of12 years shall be calculated from the date specified in the relevant resolution of the board as the date for payment of the dividend.

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

Share-based Payment ReserveShare-based payment reserve includes premiums on shares issued, credits resulting from redemption or conversion of shares, fair value of stock options issued to employees and directors, unclaimed dividends, and any other contribution by shareholders in excess of amounts allocated t share capital.

It’s not uncommon for questions to arise about whether a financial liability, such as an account payable, can be removed from the balance sheet, for example because the entity has lost track of the creditor, and no longer expects ever to have to pay the amount. Although this might seem intuitively reasonable, it’s difficult to square with IAS39.AG37, which says a financial liability is extinguished when the debtor either discharges it by paying the creditor, or is legally released from primary responsibility for it, either by process of law or by the creditor. If the creditor hasn’t given a release, and the process of law hasn’t yet intervened (for example, to define unclaimed liabilities above a certain age as being extinguished just by the passage of time), then it seems the liability has to keep on sitting there, however unlikely it might seem it'll ever be settled.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

I agree with your answers

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

agreed with mr Khalid

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

AGREE WITH MR AYMAN ANSWER 

More Questions Like This