Board resolution format for declaring interim dividend under Section 123(3), with permitted profits, loss-year rate cap and payment within 30 days.
“RESOLVED THAT pursuant to the provisions of Section 123(3) and other applicable provisions, if any, of the Companies Act, 2013 and the Articles of Association of the Company, an interim dividend of ₹[●] per equity share of ₹[●] each fully paid up ([●]%) for the financial year [●], aggregating ₹[●] (Rupees [●] only), be and is hereby declared out of [the surplus in the profit and loss account / the profits of the financial year [●] / the profits generated in the financial year [●] up to the quarter ended [●]], and be paid to the members whose names appear in the Register of Members, or in the records of the depositories as beneficial owners, as on [●] (the “Record Date”).
RESOLVED FURTHER THAT the amount of the interim dividend be deposited in a separate account with [●] Bank, a scheduled bank, within five days from the date of this resolution, and the dividend be paid within thirty days from the date of its declaration, subject to deduction of tax at source under applicable income-tax law.
RESOLVED FURTHER THAT any Director and/or the Company Secretary of the Company be and is hereby severally authorised to operate the said account for payment of the dividend, to issue tax deduction certificates and to do all such acts, deeds and things as may be necessary for giving effect to this resolution.”
No rules under this Section yet.