If any company want to declare final dividend before paid intreim div. then it is posiible or not ?
Devendra
(Qualified Audit Assistant)
(521 Points)
Replied 10 December 2008
If the interim dividend is declared, then it has to be paid first before declaring and paying the final dividend.
Amrita Singh
(Service CA final student)
(74 Points)
Replied 10 December 2008
A company can declare final dividend provided either
it has issued interim dividend warrants within 30 days from the date of declaration in the Board meeting or
the directors has exercised the power to rescind the payment of dividend only up to the 29th day of its declaration and not thereafter.
Ref - The Supreme Court of India in the CIT v. Express Newspapers Ltd (1998) 3 SCC 106 or Dalmia v. CIT
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