We earlier here discussed law related to refund and reclaim of amount and shares from the Investor Education and Protection Fund under the amended Rules. For this purpose, the Government launched New Form IEPF-5 in its web version on 20th September 2019. In this post, we will discuss the practical aspect of filing this form.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Corresponding New Bank, Form IEPF – 5, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Originally, neither the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 nor the Companies Act, 2013 have any mention of Nodal Officer except Form IEPF – 5. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 first time bring this term in main rules. Now the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 strengthen and formalized the office of Nodal Officer. New Provision came into effect with effect from 20th August 2019.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Form IEPF – 2, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, tagged Corresponding New Bank, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Ministry of Corporate Affairs amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 rules published in Official Gazette on 14th August 2019. In this post, we will discuss amended provisions related to refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority. Amendment relevant to this post comes into effect with effect from 20th September 2019 except fraudulent claim and deceitful impersonation related provisions under Rule 7(11) which came into effect on 20th August 2019.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Corresponding New Bank, Form IEPF – 5, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. We discussed procedure amended with effect from 20th August 2019 in the last post here. In this post, we will discuss the post-transfer effects and procedures.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Corresponding New Bank, Form IEPF – 1, Form IEPF – 4, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. The procedure is now amended with effect from 20th August 2019.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Form IEPF – 4, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Section 124 of the Companies Act, 2013 and other provisions of laws mandates credits of certain amounts to the Investor Education and Protection Fund (IEPF). Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. The procedure is now amended with effect from 20th August 2019. We will discuss the updated process which is more logical and easy to comply.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, Form IEPF -1A, Form IEPF – 1, Form IEPF – 2, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend
Since the introduction of Investor Education and Protection Fund (IEPF) in the year 2001, I have a keen interest in the law related to investor protection, particularly under the Companies Law. Presently, one of the significant but neglected features of the IPEF Rules is the definition of the Company. The definition has been amended several times to keep track of silent changes of several laws without much notice of the stakeholder.
Application for removal of the name of the companies from the register of companies maintained by Company registrars has legal roots in Subsection (2) of Section 248 of the Companies Act, 2013 as discussed earlier here and now outdated. Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 deals with its procedural aspects which we discussed earlier here. Recently, the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2019 amended Rule 4 significantly. We will discuss updated Rule 4 in this post.
[Law discussed in this post is as on 10th May 2019]
Ministry of Corporate Affairs on 22nd May 2018 notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Third Amendment Rules, 2017 to amend Rule 6 of principal Rules and to insert Form IEPF – 7. The nomenclature of these amendments charily indicates that thought process to introduced Form IEPF -7 was started during the year 2017 but somehow delayed. Let us discuss these amendments.
Posted in Chapter VIII - CA2013, Companies Act 2013
Tagged Audit, declaration of dividend, Dividend, Form IEPF - 7, Form IEPF – 1, Form IEPF – 4, IEPFA, Section 124, Section 125, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Third Amendment Rules 2017
Dividend usually is a payment made by a company to its shareholders out of distributable profit. In layman term, it is a share of profit for a shareholder. The Companies Amendment Act, 2017 read with notification dated 9th February 2018 amended law related to declaration of dividend. This post discusses law related to dividend after recent amendment in the Companies Act, 2013.
Posted in Chapter VIII - CA2013, Companies Act 2013
The Investor Education and Protection Fund (IEPF) educates investors and protect their interests. The Companies Act, 2013 brought provisions for transfer of shares of untraceable shareholders to the IEPF. The IEPF shall hold shares transferred to it as custodian and such transfer is not a statutory vesting of any property.
The Recent order of Delhi court discussed these rules in details. The High Court order that It is imperative that the Central Government gives publicity to the transfer of shares, by virtue of the provisions (not of individual companies) to inform the public, and ensures a simple, as well as compact form with the attendant procedure, is notified, for reclaiming them.
Now, this post discusses some practical issues may be faced by innocent investors residing far interior places while reclaiming their shares.
These are few cases where either investor or company needs awareness, education or clarity. The Government need an early step to retain the faith of investors and companies in the IEPF. The government should focus on the user-friendly website of MCA and IEPF.
My friend Gaurav Pingle pointed out in his article, the High Court in above-mentioned order has clarified that the shareholder continues to retain ‘title’ of the shares but loses ‘agency’. However, the Court has also stated that the company is relieved from the responsibility of holding shares or reflecting it in its list of shareholders. This needs some fine tuning in law.
Posted in Chapter VIII - CA2013, Companies Act 2013
Originally, neither the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 nor the Companies Act, 2013 have any mention of Nodal Officer except Form IEPF – 5. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 first time bring this term in main rules.
Ministry of Corporate Affairs recently amended Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 published in Official Gazette on 13th October 2017 and came into force on the same date. We discussed original rules here and earlier amended rules here. In this post, we will discuss amended law related transfer of shares related to unpaid dividend to the Investor Education and Protection Fund Authority.
Ministry of Corporate Affairs amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 rules published in Official Gazette on 28th February 2017 and came into force on even date. In earlier post here and here(original)/here(amended), we discussed transfer of amounts of unpaid and unclaimed dividends etc to the Investor Education and Protection Fund Authority Fund and transfer of shares in respect of which dividend is remain unpaid and unclaimed for continuous seven years. In this post, we will discuss amended provisions related to refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority.
Posted in Chapter VIII - CA2013, Companies Act 2013, Governance and Responsibility, Investor Education, Truth of Our Time
Tagged Audit, Form IEPF – 5, IEPF, Investor Education and Protection Fund, Refund Claim, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Amendment Rules 2017, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend
Ministry of Corporate Affairs recently amended Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 published in Official Gazette on 28th February 2017 and came into force on same date. We discussed original rules earlier here. In this post, we will discuss amended law related transfer of shares related to unpaid dividend to the Investor Education and Protection Fund Authority.
Ministry of Corporate Affairs recently issued Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules published in Official Gazette on 5th September 2016 and came into force on 7th September 2016. In earlier post here and here, we discussed transfer of amounts of unpaid and unclaimed dividends etc to the Investor Education and Protection Fund Authority Fund and transfer of shares in respect of which dividend is remain unpaid and unclaimed for continuous seven years. In this post, we will refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority.
UPDATE – provisions in this post are redundant from 28th February 2017 due to amendment in relevant Rules. Please click here to know new provisions.
Ministry of Corporate Affairs recently issued Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules published in Official Gazette on 5th September 2016 and came into force on 7th September 2016. In this post, we will discuss transfer of amount of unpaid dividend to the Investor Education and Protection Fund Authority.
At peak time of dividend declaration, Ministry of Corporate Affairs gifted Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules published in Official Gazette on 5th September 2016 and came into force on 7th September 2016. In this post, we will discuss reporting of unpaid dividend to the Investor Education and Protection Fund Authority.
Investor Education and Protection Fund Authority established under Section 125(5) of the Companies Act, 2013 is an authority to administer for administration of Investor Education and Protection Fund established under Section 125(1) of the Act. Operating provisions of Section 125 are not force, but recently a Notification S.O. 125(E) dated 13th January 2016 notified part of this Section to be effective with effect from 13th January 2016. Consequently, Ministry of Corporate Affairs also put a draft notification for the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016. In this post, we discuss the Notification and these Rules.
Posted in Chapter VIII - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility
Tagged holding of meetings and provision for offices and officers) Rules 2016, India, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, The Companies Act 2013, The Investor Education and Protection Fund Authority (Appointment of Chairperson and Members
The Ministry of Corporate Affairs placed here on its website a draft of the Companies (Declaration and Payment of dividend) Second Amendment Rules, 2015. These amendment Rules will come into force from the date of its publication in Official Gazette.
These amendment rules proposed to omit Rule 3(5) of the Companies (Declaration and Payment of dividend) Rules, 2014.
The Deleted Rule 3(5) read as under,
“No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year are set off against profit of the company of the current year the loss or depreciation, whichever is less, in previous years is set off against the profit of the company for the year for which dividend is declared or paid.”
Posted in Chapter VIII - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility
Tagged Companies Act 2013, Corporate Law, Dividend, India, Ministry of corporate affairs, the Companies (Declaration and Payment of Dividend) Rules 2014, the Companies (Declaration and Payment of dividend) Second Amendment Rules 2015, The Companies (Registration of Charges) Rules 2014
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AishMGhrana 