On 31 July 2015, the Directors of Clove Engineering Limited (CEL), a listed company, declared an interim

dividend of Rs. 5 per share. However, before making payment of the dividend, the company suffered

huge losses due to a massive fire in the factory. The CFO has informed the board of directors about CEL's

inability to pay the dividend in time. Under the provisions of the Companies Ordinance, 1984 briefly

describe:

(a) When an interim dividend is deemed to have been declared by CEL.

(b) The consequences of non-payment of dividend within the stipulated time.

(c) The circumstances under which CEL may not be responsible to pay dividend to certain shareholders.