(a) whether the Government/Securities and Exchange Board of India (SEBI) imposes any
penalty on
the companies who fail to pay dividend to their shareholders;
(b) if so, the details and conditions thereof; and
(c) the details of companies penalised in this regard during each of the last three years
and the current
year?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b): As per Section 205A of the Companies Act, 1956 if a dividend has been declared by a
company but has not been paid within thirty days from the date of the declaration to any
shareholder entitled to the payment of the dividend, the company shall, within seven days from
the date of expiry of the said period of thirty days, transfer the total amount of dividend which
remains unpaid, to a special account called `Unpaid Dividend Account` to be opened by that
company in any scheduled bank. If a default is made in transferring the total amount referred
or any part thereof to the unpaid dividend account of the concerned company, the company shall
pay, from the date of such default, interest on so much of the amount as has not been
transferred to the said account, at the rate of twelve per cent per annum and the interest
accruing on such amount shall enure to the benefit of the members of the company in proportion
to the amount remaining unpaid to them. If a company fails to comply with any of the requirements
of Section 205 A, the company, and every officer of the company who is in default, shall be
punishable with fine which may extend to five thousand rupees for every day during which the
failure continues. As per Section 207 of the Companies Act, where a dividend has been declared
by a company but has not been paid, or the warrant in respect thereof has not been posted, with
in thirty days from the date of the declaration, to any shareholder entitled to the payment of
the dividend, every imprisonment for a term which may extend to three years and shall also be liable to a fine of
one thousand rupees for every day during which such default continues and the company shall be
liable to pay simple interest at the rate of eighteen per cent per annum during the period for
which such defai continues. As per Section I5C of the SEBI Act, if any listed company, after
having been called upon by the SEBI in writing, to redress the grievances of investors which may
also include non-payment of dividends, fails to redress such grievances within the time specified
by SEBI, such company shall be liable to a penalty of one lakh rupees for each day during which
such failure continues or one crorc rupees, whichever is less.
(c): The details of listed companies penalised by SEBI during the last three years and the
current year for non redressal of investor grievances for complaints regarding non-receipt of
dividends arc as follows:
Financial Name of the Penalty amount Date of the Year company (Rs.) adjudication order 2013-14
(till 22/4/2013) I. Usha India Ltd. 26,33,000 18/04/2013
2012-13 1. Satguru Agro 2,00.000 28/06/2012 Industries Ltd
2. Jord Engineers 2,00,000 28/06/2012 India Ltd
3. Lohia Polyesters 5,00,000 20/11/2012 Ltd.
4. Gujarat Filaments 5,00,000 9/10/2012 Ltd.
5. Earnest Healthcare 10,00,000 12/11/2012 Ltd
2011-12 1. ICES Software Ltd 30,000 9/3/2012
2010-11 1 Nexus Software Ltd. 10,00,000 28/07/2010
2. Motorol Enterprise 25,00,000 25/3/2011 Ltd.
Financial Relevant Section of No. of prosecutions Year the Companies Act
2012-13 Nil Nil
2011-12 205A 1
207 2
2010-11 2O5A Nil
207 Nil
2009-10 2O5A 2
207 Nil