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Question
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?
Solution
- 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.
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RELATED QUESTIONS
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.
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.
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?
Select the suitable option for the following.
____________ Interim Dividend.
Answer in one sentence.
At which Meeting Interim Dividend is decided and declared?
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.
AGM is crucial for Final Dividend.
Justify the following statement.
Approval of members is not needed for Interim Dividend.
Explain Interim Dividend.
