During the financial year 2016-17, Perfect Limited declared an interim dividend for the second time. After the declaration, the Board of Directors decided to revoke the second interim dividend as its financial position was poor, to accommodate the said interim dividend.
(i) Examine the validity of the Board’s decision under the provisions of the Companies Act, 2013.
(ii) Examine what will be your answer, if the Board proposes to transfer more than 10% of the profits of the company to the reserves for the current year before the declaration of any dividend?