The board recommends a dividend after the accounts for a completed financial year are prepared, and the members declare it at the annual general meeting. What kind of dividend is this?
Question and options
The board recommends a dividend after the accounts for a completed financial year are prepared, and the members declare it at the annual general meeting. What kind of dividend is this?
Interim dividend
Bonus dividend
Deemed dividend
Final dividend
Answer and explanation
A final dividend is recommended by the board for a completed financial year and declared by the members at the annual general meeting. An interim dividend is declared by the board itself during the year under section 123(3), and a deemed dividend is a tax concept, not a declaration under the Companies Act.
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