Final Dividend and Interim Dividend
Q.4 (3) Final Dividend and Interim Dividend
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| Points | Final Dividend | Interim Dividend |
|---|---|---|
| Meaning | Dividend declared at the Annual General Meeting after the accounts of the year are finalised. | Dividend declared by the Board between two AGMs, during the financial year. |
| Declared by | Recommended by the Board and declared by shareholders at the AGM. | Declared by the Board of Directors. |
| Basis | Based on the final accounts (actual profit) of the year. | Paid out of the surplus in the profit and loss account and profits of the current year up to the quarter before declaration; it cannot be paid out of free reserves. |
| Time | Declared after the close of the financial year. | Declared during the financial year. |
| Revocation | Cannot be revoked once declared. | Can be revoked only with shareholders’ consent once declared; the Board may reconsider before payment in some cases. |
| Rate | Shareholders can reduce but not increase the rate recommended. | Rate decided by the Board; if the company incurred a loss up to the quarter before declaration, rate cannot exceed the average of the three preceding years. |
Doubtly AI
· 28 Oct 2026
AI-verified · Oct 2026
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