According to the Companies and Allied Matters Act, unclaimed dividends are dividends not claimed within six months after declaration and are subsequently returned to the company, from where the shareholders can make claims not later than 12 years. Shareholders, however, forfeit dividends not claimed within 12 years.
In essence, any dividend which has remained unclaimed for 12 years from the date when it became due for payment shall, if the board so resolves, be forfeited and cease to remain due for payment by the Company.