Interim Dividend and Final Dividend
Q.4 (iii) Interim Dividend and Final Dividend
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| Points | Interim Dividend | Final Dividend |
|---|---|---|
| Meaning | Dividend declared by the Board of Directors between two Annual General Meetings, during the financial year. | Dividend declared at the Annual General Meeting after the accounts of the year are finalised. |
| Declared by | Board of Directors. | Shareholders at the AGM, on the recommendation of the Board. |
| Time | Any time during the financial year, before final accounts. | After the close of the financial year, at the AGM. |
| Source | Out of surplus in profit and loss account or profits of the current year up to that quarter. | Out of profits of the year, past profits or free reserves as permitted. |
| Basis | Based on estimated profits. | Based on actual profits shown by audited accounts. |
| Revocation | Being declared by the Board, it may be revoked before payment. | Once declared it becomes a debt and cannot be revoked. |
| Rate restriction | If the company has incurred loss up to the quarter, rate cannot exceed the average of the last three years. | Rate recommended by the Board; members cannot increase it. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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