AGM notice-urgent

Dear all,

It is mentioned under section 205 that interim dividend will be required to regularise through AGM. My Co. has paid interim dividend only through Board Meeting.Now What should I mention in the AGM notice regarding this regularisation issue. Does it come under ordinary business or special business .

Its bit urgent . Kindly let me know at the earliest.

Replies (5)

According to me it will neither taken as ordinary nor special business unless you are proposing Final dividend in AGM (i.e. ordinary business).

 

You will have to disclose in Dividend paragraph of Director's report that during the year under report your company has declared Rs. ------- per share as interim dividend.

 

Others views solicited,

 

 

Regards,

I have never heard anything about this kind of regularization in the AGM. Please check once again.

 

Thanks

Ankur Sir,

 

Exactly i am unable to find the letter of Department but for refernence i have got the following:-

 

8. Approval of members at the general meeting for Interim dividend

If the Interim dividend is approved by the Board of directors, the amount of Interim dividend shall be included in the profit and loss account for the year and also in the directors' report alongwith the final dividend, if any, proposed for the approval of the members at the forthcoming annual gene ral meeting. When the audited accounts and directors' report are placed at the annual general meeting and adopted by the members, the interim dividend is deemed to have been approved by the company in general meeting.

Approval of dividend is the privilege of the general meeting and the Board can pay interim dividend if so authorised by the Articles of Association subject to the regularisation of the interim dividend by the company in general meeting. The general meeting for this purpose shall be an annual general meeting only, for the profit for the financial year would not otherwise be known. [Letter No. 8/13/(205)/79-CL-V, dated 18-7-1981].

 

Regards,

Oh...that is great peace of info...i was really not aware...Thanks Vivek bhai.

 

But there is no problem at all.


Keeping in view the language used by section 173(1)(a)(ii) the same is an ordinary business for which no explanatory statement would be required and drafting of resolution is quite simple with the help of above clarification.


My pleasure sir, thnx for appreciation

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