The resolution which was passed on 6th December, 1962, therefore, was in the previous year relevant to the assessment year 1963 64 whereby the payment was made to the shareholders in the following year relevant to the assessment year 1964 65.
For paying interim dividend a resolution of the Company is number required if the directors are authorised by the articles of association they may pay such amount as they think proper, having regard to their estimate of the profits made by the companypany.
Interim dividend is therefore paid pursuant to the resolution of the directors on some day between the ordinary general meetings of the companypany.
Having failed to get any relief from the appellate authorities, a question of law with regard to this aspect was referred to the High Court by the Tribunal.
But power to pay interim dividend is usually vested by the articles of association in the directors.
A final dividend in general may be sanctioned at an annual meeting when the accounts are presented to the members.
In re Severn and Why and Severn Bridge Railway Company.
Two others questions were also referred but we are number companycerned with those in the present case and answer to them stand companycluded by the judgment of the High Court.
