State Bank of India (Subsidiary Banks Laws) Amendment Act,2007
Section 20. Insertion of new Section 40-A
After Section 40 of the State Bank of India (Subsidiary Banks) Act, the following section shall be inserted, namely:-
’40-A. Transfer of unpaid or unclaimed dividend to unpaid dividend account.-(1) Where, after the commencement of the State Bank of India (Subsidiary Banks Laws) Amendment Act,2007, a dividend has been declared by the subsidiary bank but has not been paid, or claimed, within thirty days from the date of declaration, to or by any shareholder entitled to the payment of the dividend, the subsidiary bank shall, within seven days from the date of the expiry of such period of thirty days, transfer the total amount of dividend which remains unpaid, or unclaimed within the said period of thirty days, to a special account to be called “unpaid dividend account of…………………………… (Name of the subsidiary bank)”
In this sub-section, the expression “dividend which remains unpaid” means any dividend the warrant in respect thereof has not been encashed or which has otherwise not been paid or claimed.
(2) Where the whole or any part of any dividend, declared by the subsidiary bank before the commencement of the State Bank of India (Subsidiary Banks Laws) Amendment Act,2007, remains unpaid at such commencement, the subsidiary bank shall, within a period of six months from such commencement, transfer such unpaid amount to the account referred to in sub-section (1).
(3) Any money transferred to the unpaid dividend account of the subsidiary bank 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 subsidiary bank to the Investor Education and Protection Fund established under sub-section (1) of Section 205-C of the Companies Act,1956 (1 of 1956).
(4) The money transferred under sub-section (3) to the Investor Education and Protection Fund shall be utilised for the purposes and in the manner specified in Section 205-C of the Companies Act,1956 (1 of 1956).’