Interim dividend by a company- less than 3 years old

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2016 INTERIM DIVIDEND: Can A company,, earning profits declare Interim Dividend, though not in existence for 3 years?

rajesh

rajesh (Expert)
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17 June 2016 Here ,
3y concept arise only when the declaration rate of dividend ,
In case the company has incurred loss during the current
financial year up to the end of the quarter immediately
preceding the date of declaration of interim dividend,
such interim dividend shall not be declared at a rate
higher than the average dividends declared by the
company during the immediately preceding three
financial years