Mihir Manohar (CA Final - Article Assistant) (474 Points)
27 March 2015for Annual dividends,
The normal procedure is that the company's BOD propose the dividend and later on it is agreed by the shareholders at the AGM.
Is it permitted that the BOD proposes dividend post AGM and then calls an EGM to declare it?
CA JITENDER CHAUHAN
(PRACTISING CHARTERED ACCOUNTANT)
(56 Points)
Replied 28 March 2015
its my opinion that above dividend then fall under the category of interim dividend because BOD has power to declare interim dividend without shareholder permision
Mihir Manohar
(CA Final - Article Assistant)
(474 Points)
Replied 20 April 2015
Yes, Mr.Jitender. I agree with your contention. And its more logical also that company will go for interim dividend in such cases.
But is the arrangement explained in the question possible or not?
CAclubindia
