Board Resolution – Declaration of Interim Dividend
Resolution by the board declaring an interim dividend to shareholders.
What this format contains
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF [COMPANY NAME]; HELD ON SATURDAY, 03RD DAY OF [DATE], AT THE REGISTERED OFFICE [ADDRESS], ANCILLARY [ADDRESS], [PLACE]-[PIN] AT [TIME]
TO DECLARE INTERIM DIVIDEND FOR THE FINANCIAL YEAR [FY]:
The Board of Directors of the Company is of the view that Company has made Significant Profit in Last Quarter ended on [DATE] and decided to declare an interim dividend of [AMOUNT]/- ([AMOUNT IN WORDS]) per share in the financial year [FY] to the Equity Shareholders of the Company. The Board of Director of the company discussed the above proposal and approved the following resolution:
“RESOLVED THAT pursuant to the Section 123 Companies Act, 2013, read with the relevant rules, as applicable, the Board be and hereby declare an interim dividend of [AMOUNT]/-([AMOUNT IN WORDS]) per share amounting to [AMOUNT]/- ( [AMOUNT] ) on each fully paid-up equity share. The outstanding shares of the Company as on date is [FIGURE]/- ([NUMBER OF SHARES IN WORDS] only) be paid out of the profits of the Company from current year’s profit as per the provisional Financial Statements of the Company to those Members whose names appear in the Register of Members as on date, being the Record Date for the payment of interim dividend.
RESOLVED FURTHER THAT the dividend account number [ACCOUNT NUMBER] maintained with [BANK NAME], [BRANCH NAME] Branch, which will be used for the purpose of payment of interim dividend for the financial year [FY] and be used for the purpose of disbursement of the interim dividend and a sum of [AMOUNT]/- ( [AMOUNT]) be deposited in the said account within 5 days from the date of declaration of Interim Dividend.
RESOLVED FURTHER THAT Mr. [DIRECTOR 2 NAME] Director of the Company and Mr. [DIRECTOR NAME] Wholetime Director of the Company be and are hereby authorized to operate the said interim dividend account and to issue dividend warrants/cheque and the Bank is hereby authorized to honour such warrants/cheques bearing the signatures of the authorized signatories of the Company by debiting the said interim dividend account.
RESOLVED FURTHER THAT any of the Directors of the Company be and are hereby authorised to do all the necessary acts, deeds, things in this regard and to Sign, Execute all the documents as may required to give effect to the said resolution.”
FOR [COMPANY NAME]
[DIRECTOR NAME]
WHOLETIME DIRECTOR
DIN: [●]
Date: [DATE]
Place: [PLACE]