Interim dividend

INTERIM DIVIDEND:

The articles of a company any empower the directors to declare interim dividends.ie.., dividends in between its two annual meeting. the board may from time to time pay to the memebers such interim dividends as appear to it to be justified by the profits of the company articles(Article 86 of table a.).


PAYMENT OF INTREST OUT OF CAPITAL:

Some times shares in a company may be issued for the purpose of raising money to defray the express of the construction of any work or building or the provision of any plant,which cannot be made profitable for a long time to come.


CONDITIONS FOR PAYING INTREST OUT OF CAPITAL:


1.Articles or spesiol resolution to authorise payment.

2.Previous sanction of the central goverment.

3.Inquiry by the central goverment.

4.Duration of payment.

5.Maximum rate not to exceed 4%.