Interim dividend is a dividend paid between two annual general meetings of the company,
- The BOD may declare interim divided from time to time.
- The amount of dividend including interim dividend shall be deposited in a separate Bank account within five days from the date of declaration of such dividend.
- The amount of dividend so deposited above shall be used for payment of interim dividend.
- Since, interim dividend does not constitute a statutory debt and therefore directors can rescind it by passing a resolution.