Interim dividend declaration: profits computed excluding unrealised gains and capped if current-year losses affect the preceding quarter. Section 123 is amended to exclude unrealised gains, notional gains, asset revaluations and fair-value measurement changes when computing profits for dividend distribution; references to 'reserves' are replaced by 'free reserves.' The Board may declare interim dividends from surplus in the profit and loss account, profits of the financial year, or profits up to the quarter preceding declaration, but if the company has incurred a loss up to that quarter the interim dividend rate cannot exceed the average dividends declared in the immediately preceding three financial years.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Interim dividend declaration: profits computed excluding unrealised gains and capped if current-year losses affect the preceding quarter.
Section 123 is amended to exclude unrealised gains, notional gains, asset revaluations and fair-value measurement changes when computing profits for dividend distribution; references to "reserves" are replaced by "free reserves." The Board may declare interim dividends from surplus in the profit and loss account, profits of the financial year, or profits up to the quarter preceding declaration, but if the company has incurred a loss up to that quarter the interim dividend rate cannot exceed the average dividends declared in the immediately preceding three financial years.
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