Payment of Unpaid or Unclaimed Dividend (Section 205A(5) of the Companies Act, 1956) :

According to Section 205A(5)of the Companies Act, 1956, any money transferred to the unpaid dividend account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company to the Investor Education and Protection Fund established under sub -section (1) of section 205Cof the Companies Act, 1956.

No claims shall lie against the Investor Education and Protection Fund or the company in respect of individual amounts which were unclaimed and unpaid for a period of seven years from the dates that they first became due for payment and no payment shall be made in respect of any such claims.[Explanation to sub-section (2) of section 205Aof the Companies Act, 1956]