SEC Urged to Streamline Record-Keeping to Tackle N215bn Unclaimed Dividends
- Posted on November 21, 2024
- Stock Market
- By Samiat
Key Highlights:
1. Call for Better Record-Keeping:
Shareholders have appealed to the Securities and Exchange Commission (SEC) to improve record-keeping processes to ease the retrieval of unclaimed dividends, currently estimated at N215bn.
2. Challenges with Deceased Shareholders:
• Families often face difficulties retrieving documents needed to claim dividends.
• Many are unaware of shares owned by deceased relatives.
• Issues stemming from past privatization efforts, where shares were purchased under different names, complicate claims.
3. Impact of Inadequate Documentation:
• Shareholders using single-share purchases to attend meetings instead of earning dividends exacerbate the issue.
• Registrars have been urged to simplify and make claim processes more flexible.
4. Registrar Discrepancies:
• Some shareholders, like Ariyo Olugbosun, shared frustrations over signature mismatches and uncoordinated registrar databases, which hinder dividend claims.
5. Proposed Solutions:
• Redirecting unclaimed dividends to issuing companies for business growth.
• Enhanced collaboration between registrars for better database management.
• Deployment of technology-driven solutions by SEC to tackle unclaimed dividends effectively.
Takeaway
Efficient record-keeping and stakeholder collaboration are crucial to addressing Nigeria’s growing unclaimed dividends. The SEC is urged to act promptly to restore shareholder trust and streamline the process.
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