Section 352 of the Companies Act, 2013
Section 352 of the Companies Act, 2013 pertains to the Company Liquidation Dividend and Undistributed Assets Account.
📘 Section 352 – Company Liquidation Dividend and Undistributed Assets Account
Key Provisions:
Transfer of Unpaid Amounts:
When a company is liquidated, and any money remains unpaid (like dividends or other amounts due to creditors or shareholders), such amounts must be transferred to a special account named "Company Liquidation Dividend and Undistributed Assets Account", maintained in the Public Account of India.
Time Limit:
The transfer must be made within 5 days from the date the money becomes due.
Claim by Creditors/Shareholders:
Anyone claiming entitlement (creditor or shareholder) can approach the Tribunal for payment of the amount due to them.
Unclaimed for 7 Years:
If any amount remains unclaimed in the above account for 7 years, it will be transferred to the General Revenue Account of the Central Government.
Right to Claim Even After Transfer:
Even after the amount is transferred to the General Revenue Account, the rightful person can still claim it by applying to the appropriate authority.
🔸 Purpose:
This section ensures that unclaimed money during the liquidation process is safeguarded and remains accessible to rightful claimants, even after a long time.
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