If any shareholder does not receive the dividend, what action can be taken ?
The shareholder has to verify his personal record carefully at first. Afterward he/she should write to the concerned company where he/she holds the share giving the details of the dividend not received as well as quote his folio number. In case the share holder holds shares in electronic mode then he must provide the DP ID and client ID. After verifying the records with the banker to the issue, the comapany may issue the shareholder a Banker's Cheque / Demand draft for the unpaid amount.
What is the process for receiving a duplicate dividend warrant ?
If the validity period of the lost dividend warrant still exists, the shareholder has to wait up to the expiry date as no duplicate will be issued throughout the validity period of the original warrant. However completion of the validity period, if the dividend warrant is visible as unpaid as stated by the Bank Statement, a Banker's Cheque/Demand draft is then issued to the shareholder.
Can any share holder claim the previous dividends regarding earlier periods that are still owing to him ?
With the existing law, the company keeps hold of all unpaid/unclaimed dividends for the past seven years. If any shareholder does not received any of these dividends, he can send a written complain to the company with the related particulars like folio number/DP ID & Client ID, concerned dividend, year etc. The company will arrange to disburse the outstanding dividend showing unpaid in the records.
What precautions should be undertaken by the Shareholders ?
If the shares are arranged in physical form then the shareholders must get in touch with the registrar and transfer agents of each company, whose shares are arranged in physical form, and get hold of bank mandate form in order that the dividend from the companies directly deposited into the concerned bank account of the shareholders.
If the shares are arranged in electronic format in Demat account then the shareholder should provide bank account details to the Depository Participant with whom the Demat account of the shareholder is being maintained.
The shareholders have to submit the proper details of their bank account which contain IFSC code of the bank branch and MICR code of the Bank at the time of giving the bank account details to registrars of the company or depositor participants.
The shareholders must also verify that the name provided in the share certificates in physical form or in the Demat Account client ID tally with the name of the Bank Account. It is suggested to obtain 3-in-1 account associated with Bank account, Trading account and Demat account and the shareholders should stay away from variety of account.
The shareholders should transfer all their physical shares, bonds and securities into a single Demat account in order that they can keep record all their dividends, interest on bonds and securities and perform the costing exercise by hand. The 3-in-1 account also facilitates the shareholders to do business in commodities, gold and gold ETF, mutual funds and even foreign currencies depending on definite foreign exchange regulations.
Can any shareholder authorise his banker or any other person to collect dividends on his behalf ?
Yes. One is able to perform the same by providing the name and address of the authorised person/banker and it should include all the important details like folio number, number of shares, specimen signatures recorded with the concerned company. This method is relevant only if anyone acquires shares in physical form.
What steps should be taken if any dividend remains unpaid/unclaimed for more than 7 years ?
If the amount of dividend is pending (unpaid/unclaimed) for a period surpassing 7 years than the said amount is inevitably transmitted to the "Investor Education and Protection Fund" (IEPF), a Central Government organization. Once the dividend amount is transmitted to IEPF, the shareholders cannot claim any dividend amount.