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Interim Dividend

Amol Gopal Kabra (CA,CS,DISA) (Practicing CA) (8504 Points)

27 June 2009  

I have a confusion.

 

Can interim dividend be declared out of prior years profit..?


 8 Replies

sudhir gautam (CA Final) (145 Points)
Replied 27 June 2009

Dear Sir

 Interim Dividend Can be paid out of the free reserves

CS Ankur Srivastava (Company Secretary & Compliance Officer)   (17821 Points)
Replied 27 June 2009

Yes, intirim dividend can also be declared by the Board of Directors out of Previous Years accumumated profits(arriving after providing for depreciation).

1 Like

CS Asmita Mehta (CS) (308 Points)
Replied 27 June 2009

As per section 2(14a) of the compnies act dividend includes interim dividend. Meaning thereby all the provisions related with dividend (sec 205 205A 205C 206 206A and 207) will as it is apply to interim dividend also................

Now i dont think any more explaination is required..........

1 Like

CA.Shaleen Srivastava (CA , CWA*, Bcom(H)) (1999 Points)
Replied 28 June 2009

 intirim dividend can also be declared by the BOD out of Previous Years accumumated profits(arriving after providing for depreciation) u/s 205.

CS Ankur Srivastava (Company Secretary & Compliance Officer)   (17821 Points)
Replied 29 June 2009

The reply of Miss Nikita is perfect. This is the reason why the company can declare intirim dividend out of accumulated profits of the Company.

shah (internee) (26 Points)
Replied 23 March 2011

interim dividend

Q.1

Hi is it must to specify the period for interim dividend?

can it be declared for a short term lets say 50 days?

for example if the interim dividend is declared on 18 Angust, can we say interim dividend for period ended 17 August or 50 days etc?

 

Q2.

If we declare interim dividend on 24 August for the quarter ended 30th June, can we claim this earning for the period after 30th June till 24 August? I mean this will be earning for just that quarter or it will cover the whole period till declarartion. Just want to know as need to claim earning for a specific period.

Q3.

Can interim dividend be declared before the ending period? For example 'An interim dividend is declared on 24Dec for the period of ending 31 Dec of the same year.

Thanks

SANTOSH SHAH (Company Secretary) (749 Points)
Replied 24 March 2011

Originally posted by : shah

interim dividend

Q.1

Hi is it must to specify the period for interim dividend?

can it be declared for a short term lets say 50 days?

for example if the interim dividend is declared on 18 Angust, can we say interim dividend for period ended 17 August or 50 days etc?

 

Q2.

If we declare interim dividend on 24 August for the quarter ended 30th June, can we claim this earning for the period after 30th June till 24 August? I mean this will be earning for just that quarter or it will cover the whole period till declarartion. Just want to know as need to claim earning for a specific period.

Q3.

Can interim dividend be declared before the ending period? For example 'An interim dividend is declared on 24Dec for the period of ending 31 Dec of the same year.

Thanks

 Hi

In my opinion,

Interim dividend can be paid quarterly or halfyearly according to companys  adequate

undistributed profits  b/f from previous years And decision of board.

 

And you cannot declare the period of interim dividend and pay dividend before end of the

said period. In other words, the period for which interim dividend is declared i.e, say from june -aug,

the period needs to be completed accordingly.

Other views welcome.

 

regards

Santosh Shah

CS Ankur Srivastava (Company Secretary & Compliance Officer)   (17821 Points)
Replied 18 August 2011

Period does not have any relation with the Dividend.

 

Dividend is just the distribution of profits among the Shareholders of the Company. It may be interim or Final.
 

You have only to mention Interim Dividend or Dividend (i.e. Final).


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