Interim Dividend

I dont think there is any problem provided the Company complies with Section 205 particularly with respect to depreciation and transfer to reserves

Dear Lineesh,

Any Companies doing so ?

Regards

Prashant Jain

interim divided is dividend declared between 2 AGMs. bod can declare it.

Dear Sangam,

Any legal reference that it is between two A.G.M and not in the finacial year.

Regards

Prashant Jain

Guys what if a co. declares an interim dividend on account of profits earned during the say 1ST 6 monhs of a F.Y. but consequently incurs a loss on an annual basis?

yes, interim dividend can be declared by the board of directors of the compay befor the annual general meeting

The above mentioned interim dividend will be for the financial year 2008-2009 and not for the year 2007-2008. And directors need to ensure that company makes profit in the year 2008-2009. Otherwise they will be personally liable to the company if provisions of section 205 are not complied with for one reason or the other.