The Ministry of Corporate Affairs (MCA), in furtherance to the earlier notice dated December 07, 2016 has now notified Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017.
By the said notification, MCA has clarified following points:-
- The due date for transfer of shares has been notified as 31st May, 2017.
- In cases where seven years period provided under Section 124(5) of the Companies Act, 2013, is due to complete or being completed, the due date for the transfer of shares shall be deemed to be 31st May, 2017.
Guidelines for the Company-
- The company shall inform to the concerned shareholders three months before the due date of transfer of shares, on their latest available address and also circulate through notice in the leading English newspaper and Regional newspaper informing that, the names and folio number of such shareholders is available on the website of such company.
- When shares are dealt within a depository, the company for the purpose of transfer of shares shall inform the depository, in furtherance of such intimidation the depository shall effect the transfer of shares in favour of the DEMAT account of IEPF Authority.
- For the transfer of shares in physical form the company shall take following steps-
– The Company Secretary or the person authorized shall make an application for the issuance of duplicate certificate of such share on behalf of the shareholder.
– Register of renewed and duplicate share certificate shall be maintained in Form No. SH-2 under Companies (Share Capital and Debentures Rules), 2014.
– Company shall inform the depository after issuance of duplicate certificate by way of corporate action, informing the conversion of share into DEMAT form and transfer of share to Authority.
- The company has to send details of all such transfers under Form No. IEPF -4 to the IEPF Authority.
- The voting rights on the shares transferred to the IEPF shall remain frozen until the rightful owner claims such shares.
Important for Shareholders-
- Even after the transfer of shares to IEPF Authority, the shareholders shall still reserve the right to claim the transferred shares from IEPF Authority, by following the due process notified under the law.