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Alex limited is facing a loss in business during the financial year 2018-2019. In the immediate preceding three financial years, the company had declared dividends

Alex limited is facing a loss in business during the financial year 2018-2019. In the immediate preceding three financial years, the company had declared dividends at the rate of 7%, 11%, and 12% respectively. The Board of Directors has decided to declare a 12% interim dividend for the current financial year at least to be on par with the immediately preceding year. Is the act of the Board of Directors valid?

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