Companies need to give unpaid amount detail on website in 90 days after AGM

Investor education and protection fund rules 2012 have a new rule which is that companies need to give unpaid amount details on company website in 90 days from the day of Annual general meeting(AGM). Investor education and protection fund issued a notification no. 352 dated 10-5-2012 about this new rule. Full notification is as under.

INVESTOR EDUCATION AND PROTECTION FUND (UPLOADING OF INFORMATION REGARDING UNPAID AND UNCLAIMED AMOUNTS LYING WITH COMPANIES) RULES, 2012
NOTIFICATION NO. G.S.R. 352(E), DATED 10-5-2012
In exercise of the powers conferred by clauses (a) and (b) of sub-section (1) of Section 642 of the Companies Act, 1956 (1 of 1956), read with sub-section (3) of Section 205C of that Act, the Central Government hereby makes the following rules, namely:-

Short title and Commencement
1. (1) These rules may be called the Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012.
(2) They shall come into force with effect from 20th May, 2012.

Definitions
2. In these rules, unless the context otherwise requires-
(a)  'Act' means the Companies Act, 1956;
(b)  'eForm' means eform specified in the rules;
(c)  Financial year means the financial year as defined under Subsection (17) of Section 2 of the Companies Act, 1956;
(d)  Words and expressions used in these rules and not defined herein but defined in the Act shall have the meaning as assigned to them in the Act;

Filing of information regarding unpaid and unclaimed amounts
3. Every Company (including Non-banking Financial Companies and Residuary Non-banking Companies) shall, within a period of 90 days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 166 of the Act and every year thereafter till completion of the seven years period, identify the unclaimed amounts as referred to in sub-section (2) of section 205C of the Act, separately furnish and upload on its own website as also on the Ministry's website or any other website as may be specified by the Government a statement or information through eForm 5 INV, separately for each year, containing following information, namely:-
(a)  the names and last known addresses of the persons entitled to receive the sum;
(b)  the nature of amount;
(c)  the amount to which each person is entitled;
(d)  the due date for transfer into the Investor Education and Protection Fund; and
(e)  such other information as considered relevant for the purpose;

Provided that, for the financial year ended March 31, 2011, the information shall be filed, latest by the July 31, 2012.

Verification of eForm
4. The information referred to in rule 3 shall be duly verified and certified by a chartered accountant or a company secretary or a cost accountant practicing in India or by the statutory auditors of the company.

Default in filing of information
5. If a company fails to furnish and upload information or furnishes and uploads false information on the website, the company, and every officer of the company who is in default, shall be liable and in such case the provisions of Section 629A of the Companies Act, 1956 shall be applicable.


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