Advertisements
Advertisements
Question
Justify the following statement.
Approval of members is not needed for Interim Dividend.
Advertisements
Solution
- A dividend declared by the Board of Directors between two AGMs is called an Interim Dividend.
- The interim dividend is paid in the middle of the accounting year i.e. before the finalisation of annual accounts for the year.
- Articles of Association of the company must authorize the Board of Directors to declare Interim Dividend.
- The Board Meeting has to pass a resolution for declaring the Interim Dividend.
- Thus, the approval of members is not needed for the interim dividend.
APPEARS IN
RELATED QUESTIONS
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.
Write a word or a term or a phrase which can substitute the following statement.
Dividend declared between two AGMs.
Complete the sentence.
Payment of Interim Dividend needs to be authorized by ______.
Select the suitable option for the following.
____________ 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.
Arrange in Proper Order:
- Payment of Interim Dividend
- Board meeting deciding and declaring Interim Dividend.
- Authorization of Articles of Association.
Explain the following term/concept.
Interim Dividend
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?
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?
Study the following case/situation and express your opinion :
DIAMOND Co. Ltd. is considering to declare Interim Dividend.
- In how many days of the declaration it should transfer the funds to Dividend Account?
- In how many days it must pay it to shareholders?
- In how many days of the declaration it must transfer the funds to the Unpaid Dividend A/c?
Justify the following statement.
Interim dividend cannot be paid out of free reserves.
