Interim Dividend- Reserves and surplus

Corporate & Other Laws

The 4 conditions(Rule 3) for declaring dividend from Reserves and Surplus does it apply to Interim Dividend too? Or only the 1st condition is applicable to declare the Interim dividend from reserves and surplus.

Dhivyaa Latha

CA Inter

★ 4K+

17-Sep-21 11:52

716

Answers (2)

Best Answer

Rule 3 conditions are not applicable to Interim dividend since interim dividend cannot be declared out of free reserves. Rule 3 only applies to final dividend paid out of free Reserves.

CA YOGITA HARJANI

Faculty

17-Sep-21 23:03

CA YOGITA HARJANI Faculty

Rule 3 conditions are not applicable to Interim dividend since interim dividend cannot be declared out of free reserves. Rule 3 only applies to final dividend paid out of free Reserves.

Thanks a lot Ma'am.

Thread Starter

Dhivyaa Latha

CA Inter

★ 4K+

17-Sep-21 23:59