Interim dividend
This query is : Resolved
14 February 2012
Hi
Can anyone help me out in the following situation
A company declared interim dividend assuming profit but ended with a loss. Previous years were also loss. Now what will be the consequence of not paying the dividend and the liability of the Directors in the said situation?
Tks
Can anyone help me out in the following situation
A company declared interim dividend assuming profit but ended with a loss. Previous years were also loss. Now what will be the consequence of not paying the dividend and the liability of the Directors in the said situation?
Tks
14 February 2012
The declaration of an interim dividend does not create a debt against the company.The Directors can very well rescind the resolution before payment. Thus, the shareholders do not get any vested right under a Directors’ resolution declaring an interim dividend.
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