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Question
Justify the following statement.
Approval of members is not needed for Interim Dividend.
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.
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RELATED QUESTIONS
Distinguish between the following:
Interim dividend and Final dividend.
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 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?
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
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Study the following case/situation and express your opinion :
DIAMOND Co. Ltd. is considering to declare Interim Dividend.
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Justify the following statement.
Interim dividend cannot be paid out of free reserves.
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?
