With reference to the provisions of Companies Act, 2013 and the applicable Rules, explain the procedure for transfer and refund of dividend remaining unpaid/unclaimed for less than seven years.

According to Section 124 of Companies Act, 2013 (the Act), when dividend, has been declared by company but has not been paid by the company or not claimed by the shareholder within 30 days of the date of declaration of dividend, the company shall, within 7 days from the expiry of the said period of 30 days, transfer the total amount of dividend which remains unpaid or unclaimed to a special account to be opened in a scheduled bank called unpaid dividend account. Any member entitled to any money transferred u/s 124(1) of the Act as unpaid dividend may apply to the company u/s 124(4) for the payment of unpaid dividend up to a period of 7 years from the date of transfer to the unpaid dividend account. Effects of non-transfer of the dividend: As per section 124(3) of the Companies Act, 2013 if any default is made in transferring the total amount referred in section 124(1) of the Act or any part thereof to the unpaid Dividend Account of the company, it shall pay, from the date of such default, interest on so much amount as has not been transferred to the said account, at the rate of 12% per annum and interest accruing on such amount shall ensure to the benefit of the members of the company in proportion to the amount remaining unpaid to them. Section 124(5) of the Companies Act 2013 states that any money transferred to the unpaid dividend account of a company which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company along with interest accrued if any thereon to the Investor Education and Protection fund.