14 October 2013
Dividend declared by the board of directors of a company between two annual general meetings is called interim dividend. As per Section 2(14A) of the Companies Act dividend includes interim dividend also.
The Board of directors has the power to declare interim dividend. The amount of interim dividend is required to be deposited in a separate bank account within five days from the date of declaration of such dividend [section 205 (1A)].
14 October 2013
However, in addition to this just like Dividends...
Interim dividend is to be paid within 30 days of declaration. Since the provisions applicable to dividend apply to interim dividend also, the interim dividend becomes debt due once it is declared.
Thus, interim dividend can be revoked under the same circumstances where dividend can be revoked.
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