If dividend is being declared out of free reserves, can it be declared if no dividend is declared in the last 3 Financial years?

Also what will be the rate if dividend is declared only for 1 year in the previous 3 years?

3 answers

Ravi Staff April 2, 2018

If no dividend is declared in past 3 years, then we have to ignore condition of average dividend rate, that means no need to calculate average and stick to it
if dividend is given in 2 years take average of 2 years  as rule says take average of announced dividend rates
if it is announced in one year take that as average, “no need” to do (0+0+x) / 3


And if no dividend is declared in any of the previous 3 years. Then is company allowed to declare dividend?

Ravi Staff April 3, 2018

Yes it is written on rules that then this condition of average dividend will not be applicable 


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