07 October 2013
The dividend declared by a company after finalisation of accounts in the annual general body meeting with the approval of the share holders is final dividend.But the dividend declared by the company in anticipation of good profits before the finalisation of accounts , with the approval of the board od directors is called interim dividend.It is called interim, because it is paid ,in between two annual general board meeting n without finalisation of accounts n without approval of the share holders.It favourably affects the share holders in two ways.1.The share holders get cash before the end of the year in the form of dividend.2.The share price of the company increases due to improved sentiment for interim dividend
07 October 2013
The dividend shall be paid within 30 days from the date of declaration.
Sec 207 requires payment of dividend within 30 days of declaration. Sec 207 also covers certain circumstances in which dividend need not be paid. Revocation of dividend is not a ground for non-payment of dividend. Thus, ordinarily a dividend once declared cannot be revoked.
Interim dividend once declared, like final dividend, is a debt due from the company, and thus is not revocable except under the same circumstances in which the final dividend can be revoked.
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