6 Differences between Interim dividend and Final dividend

Important differences between Interim dividend and Final dividend

An interim dividend differs from a final dividend in the following respects:

1. The Board of Directors declares an interim dividend while the shareholders in the Annual General Meeting declare a final dividend.

2. An interim dividend is declared before the preparation of the final accounts. A final dividend, on the other hand, can be declared only after the accounts are prepared and the profit is ascertained.

3. Interim dividend relates to a part of the year (i.e.,) usually six months. A final dividend relates to the full year.

4. The Board can declare an interim dividend only when the Articles expressly permit a declaration. There need not be any express provision in the Articles for declaring a final dividend. It is an inherent right of the shareholders.

5. An interim dividend once declared shall not become a debt due from the company to the shareholders. While a final dividend, once declared, shall become a debt due from the company.

6. The directors are also empowered to cancel the declaration of the interim dividend after it is declared. The shareholders, once declared a final dividend, cannot cancel the declaration.

Leave a Reply




Recent Posts


Related pages


reasons for nationalizationmarginal and absorption costingprivity meansdifferent kinds of cooperativesventure capital financing definitiontypes negotiable instrumentsarr methodmeaning of endorseewhat is overhead apportionmentmarketing forecasting definitioncorporate veil protectionratified purchase contractexport promotion schemesmodes of winding up a companyinternational capital budgeting techniquesinventory auditor job descriptionwhat is non convertible debenturesdishonour of billpros of fdigratuitous baileesalesman characteristicsfeatures of castegratuitous bailmentwhat is a sinking fund provisionelements of a promotional mixspecimen of audit reporttrusts and cartelscapex meansultre viresbounties meaningsundry assets definitiondefine demeritsadvantages and disadvantages of interviews and questionnairessecuritised bondsdisadvantages of cash managementbill of exchange specimenadvantages and disadvantages e commercerole of financial intermediationconglomerate acquisitiondisadvantages of planned economyactivity based costing managerial accountingadvantages and disadvantages of mixed economywhat is operating lease and finance leaseformula for debtors collection periodadvantages of tqmadvantages and disadvantages of division of laborwhat is meant by ppcformula for payback periodcooperative retail storessocialism economy definitionretail method of estimating inventoryindirect exporting examplesexternal recruitment methodsspan of control advantages and disadvantagesaccounts receivable turnover ratio formulaexplain activity based costingdirect materials quantity variancefeatures of perfectly competitive marketstandardisation marketingwhat is the meaning of transfer pricingprofit motive meaninginventory turnover ratio interpretationwhat are the limitations of ratio analysisdefine activity based costingmarket skimming price strategymeaning of bonds and debentureswhat is the meaning of professwhat is the meaning of caveat emptorcif and fobimportances of managementparagraph for precis writingtips for writing a precispay commission calculatoradvantages and disadvantages of sales promotion pdfmarketing middlemen