Declaration of final dividend - before closure of accounts

[Adoni Raghavendra]

Dear All, Whether a "Private Limited Company" can declare final dividend before the closure/finalisation of accounts related to the period during on which dividend declared? Is it allowed/applicable in/as per the company's Act 1956. If not, what are the consequences to be faced by the company as per the law?

AI Summary

Dividend declaration: final dividend requires AGM approval while boards may declare interim dividends; adjust depreciation and losses first.
No express prohibition exists on declaring a dividend before finalisation of the current year's accounts; a final dividend must be approved at a general meeting while the board may declare an interim dividend. Necessary adjustments for depreciation and accumulated losses must be made prior to distribution.