Interim Dividend

Corporate & Other Laws

The company has declared interim dividend but it has incurred loss during the current financial year. However it is noted that the company had issued interim dividend for the past five years with the rate of 8%, 9%, 12%, 11%, 10%. Shall the board declare interim dividend, if yes, at the maximum of what rate despite loss during the current financial year? a) Calculating all the five financial years average rate: 8+9+12+11+10=50/5 which is 10% (Or) b) Calculating the last 3 financial years rate: 12+11+10=33/3 which is 11% Can you please tell which option is correct?

Rennie Felicia

CA Inter

★ 2K+

03-Oct-21 17:37

579

Answers (2)

Option B

Venkata sai Reddy

CA Inter

★ 6K+

03-Oct-21 17:53

Venkata sai Reddy

Option B

Thank you

Thread Starter

Rennie Felicia

CA Inter

★ 2K+

03-Oct-21 18:31