Board resolution for interim dividend
A board resolution for interim dividend declares a dividend between annual general meetings out of the surplus in the profit and loss account and profits of the current year, as section 123(3) of the Companies Act 2013 permits the board to do. The amount must be deposited in a separate bank account within five days and paid within thirty days of declaration.
Last updated: 27 August 2026
Doing this for a client?
OnCompliance drafts this resolution on the company’s letterhead, details filled from the client’s record, records it in the minutes, and files it in the client’s folder — with the notice, minutes and 21 other board documents made the same way.
Fill it in, edit it, download it
The details you type fill the document as you go. Click into the paper to edit any wording, then download it in Word or as a PDF.
CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE MEETING OF THE BOARD OF DIRECTORS OF [COMPANY NAME] (CIN: [CIN]) HELD ON [MEETING DATE] AT [VENUE]
RESOLVED THAT pursuant to section 123(3) of the Companies Act 2013, an interim dividend of [DIVIDEND] be and is hereby declared for the current financial year, payable to the members whose names appear in the register of members as on [RECORD DATE].
FURTHER RESOLVED THAT the amount of the dividend be deposited in a separate account with a scheduled bank within five days of this declaration and paid within thirty days, and that [NAME], [DESIGNATION], be and is hereby authorised to do all acts necessary to give effect to this resolution.
Certified true copy
For [COMPANY NAME]
[NAME]
[DESIGNATION] · DIN: [DIN]
Date: ______________ · Place: ______________
When is this resolution passed?
Pass it at a board meeting; deposit the amount in a scheduled bank in a separate account within five days and pay within 30 days.
Legal basis: s.123(3) and s.123(4), Companies Act 2013
Common questions
Who declares an interim dividend?
The board, under section 123(3); a final dividend by contrast is declared by the members at the AGM on the board’s recommendation.
What are the deposit and payment timelines?
Deposit into a separate scheduled-bank account within five days of declaration, payment within thirty days.
Can an interim dividend exceed current profits?
Where the company has incurred a loss up to the preceding quarter, section 123(3) caps the rate by reference to the average dividends of the preceding three years.
Can OnCompliance draft this for me?
Yes. OnCompliance drafts the resolution on the company’s letterhead with the details filled from the client’s record, records it in the minutes, and files it in the client’s folder, alongside the notice of the meeting and every other board document.