26 January 2008
sir, after the new amendment dividend includes interim dividend. so rules that apply to dividend applies to interim dividend. so can board of directors revoke interim dividend after being declared?
26 January 2008
Not ordinarily.But in an extraordinary situation of subsequent, unforseen, hugelosses, let us say a fire flood etc., which is likely to impact the financial stability of the company, the interim dividend can be revoked, before payment is effected. It sould be again done by the Board which earler declared. The resolution should clearly mention the justification. It would be better if its further confirmed by shareholders.
26 January 2008
No, there is no provision under the Companies Act to revoke such declaration of Interim dividend as this dividend is now equivalent to Final Dividend to be declared at AGM.
Once such declaration is made, Company will have to abide by this.
CAclubindia
