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प्रश्न
Explain the following term/concept.
Interim Dividend
उत्तर
The dividend declared by the Board of Directors between two Annual General Meetings is called 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. The opinion of the company’s Auditors should be taken before declaring Interim Dividend.
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संबंधित प्रश्न
Distinguish between the following:
Interim dividend and Final dividend.
Interim Dividend is declared by ______________.
Payment of __________ Dividend must be authorized by the Articles of Association.
Write a word or a term or a phrase which can substitute the following statement.
Dividend declared between two AGMs.
Write a word or a term or a phrase which can substitute the following statement.
Dividend decided and declared by the Board.
Complete the sentence.
Interim dividend is decided and declared by ______.
Answer in one sentence.
What is Interim Dividend?
Answer in one sentence.
Who declares Interim Dividend?
Select the suitable option for the following.
____________ Interim Dividend.
Arrange in Proper Order:
- Payment of Interim Dividend
- Board meeting deciding and declaring Interim Dividend.
- Authorization of Articles of Association.
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?
- Can the company distribute the same within 30 days of its declaration?
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.
Justify the following statement.
AGM is crucial for Final Dividend.
Justify the following statement.
Approval of members is not needed for 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?
