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प्रश्न
Study the following case/situation and express your opinion:
ABC Co. Ltd. decides to pay Interim Dividend
- Can it be paid out of free reserves?
- Is the Board right in declaring the same at the Board Meeting?
- Should the company distribute the same within 30 days of its declaration?
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उत्तर
- No, Interim Dividends cannot be paid out of free reserves. Interim Dividend is declared out of profits of the current accounting year.
- Yes, the Board of Directors has the power to decide and declare the same at the Board Meeting.
- Yes, the company should distribute the interim dividend within 30 days of its declaration.
APPEARS IN
संबंधित प्रश्न
Distinguish between the following:
Interim dividend and Final dividend.
Interim Dividend is declared by ______________.
Payment of ______ Dividend must be authorised by the Articles of Association.
Write a word or a term or a phrase which can substitute the following statement.
The company which has to intimate stock exchange about declaration of dividend.
Complete the sentence.
Interim dividend is decided and declared by ______.
Complete the sentence.
Payment of Interim Dividend needs to be authorized by ______.
Answer in one sentence.
What is Interim Dividend?
Answer in one sentence.
Who declares Interim Dividend?
Answer in one sentence.
At which Meeting Interim Dividend is decided and declared?
Correct the underlined word and rewrite the following sentence.
Final Dividend is paid between two AGMs.
Study the following case/situation and express your opinion :
RAJ Company limited decides to pay Interim Dividend
- Is the Board justified to decide Interim Dividend of ₹ 5/per share even though profits till date are insufficient?
- Can the Board declare it out of Free Reserves?
- Can the Board declare it out of Capital?
Justify the following statement.
Interim dividend cannot be paid out of free reserves.
Justify the following statement.
AGM is crucial for Final Dividend.
Justify the following statement.
Approval of members is not needed for Interim Dividend.
Explain Interim Dividend.
Diamond Company Limited is considering to declare Interim Divided:
- In how many days of declaration it should transfer the funds to Dividend Account?
- In how many days it must pay it to Shareholders?
- Can the Board of Directors declare Interim Dividend out of capital?
