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Dividend and Interest — Secretarial Practice STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeDividend and Interest4 Marks
Question
Approval of members is not needed for Interim Dividends.
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Answer

    • Dividend declared by the Board of Directors between two Annual General Meetings is called Interim Dividend.
    • It is paid in the middle of the accounting year.
    • It is declared out of profits of the current account year.
    • It is declared before the preparation of final accounts of the company.
    • The Board of Directors has the power to declare Interim Dividend.
    • Articles of Association’ of the Company must authorize the Board of Directors to declare an interim dividend.
    • The Board Meeting has to pass a resolution for declaring the Interim dividend.
    • Thus, it is rightly said that approval of members is not needed for Interim dividends.

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