Explanation:

Pursuant to sub-section (3) of section 124, if the company fails to transfer the amount of unpaid or unclaimed dividend in separate bank account within specified time of 30 days, 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 12% per annum and the interest accruing on such amount. The company is also required to ensure the benefit of the members of the company in proportion to the amount remaining unpaid to them.