Dividend Not Received Letter
A shareholder often finds problems for dividend not received. To be eligible for a dividend payment, a shareholder should be a (beneficial) possessor of shares at the time of closing up of business on the working day before the ex dividend date. If a shareholder does not get a dividend that is supposed to be forwarded to him, please make sure that the proper payment date is validate for the dividend.
Before filing a complaint for dividend not received, a shareholder should abide by the following process to claim unpaid/ unclaimed dividends, if any.
A Shareholder, who does not get Dividend Warrant as well as not encash the Dividend Warrant, should send a written communication which can be defined as dividend not received letter to the Company.
Dividend Warrants not disbursed for a long time may be went back to the Company containing a covering letter for reinstatement.
For the dividend not received or lost, a shareholder has to prepare a Letter of Undertaking and submit it to the concerned company together with a letter. After acknowledging the dividend not received letter and Letter of Undertaking, the company starts the thorough verification of its records for non-payment and arranges the dividend payment to the Shareholder through Cheque or Demand Draft.
The Shareholders prefer to claim dividends not received, should submit their appeal to the Company at its Registered Office address. Shareholders must remember that the unclaimed dividends or dividends not encashed within seven year from the date of announcement of Dividend will be carried forward to the Investor Education and Protection Fund (IEPF) of Government of India in due compliance with the provisions of Section 205A (5) read with Section 205C of the Companies Act, 1956.