Come for your dividend, SEC calls shareholders
*Says over N158bn unclaimed
By Abimbola Oloyede
SECURITIES and Exchange Commission, SEC, has urged all the shareholders who have not been able to claim their dividends to come forward and claim them.
The SEC said this recently, adding that over N158.4 billion dividends have not been claimed by the owners.
The SEC stated that the figure has continued to increase despite the introduction of e-dividend in 2015.
The commission further stated that from N100 billion in 2017 to N120 billion in 2018, has increased to N158.4 billion at the end of 2019, representing an increase of 32 per cent. N120 billion which was recorded in 2018, about N100 billion of the amount is from unclaimed shares.
The breakdown, according to the report, showed that unclaimed dividends with companies (15 months and above) stood at N119.01 billion. The ones with registrars amounted to N14.64 billion and unclaimed dividend less than 15 months old stood at N24.77 billion.
Stating the reason for the rise in unclaimed dividend, Head, Office of the Chief Economist, SEC, Mr Okey Umeano, explained that value has been on the increase since the market has been witnessing increase unclaimed shares.
He said, “The main issue why unclaimed dividend is rising is because we have a large number of unclaimed shares.” According to him, many investors during the banking consolidation bought shares with different names as well as other people’s names which they were yet to rectify. “As companies declare dividends, those accounts would equally be paid, leading to an increase in unclaimed dividend figures.
“The commission introduced a forbearance window for multiple accounts to enable investors that bought shares with different names to regularise their accounts in order to reduce the quantum of unclaimed dividends.
“SEC gave a window for people to come and rectify the multiple subscription thing.
“Many people have still not been able to claim their own because some of them have forgotten the names they used.
“Some have not been able to prove to their stockbrokers that they are the owners of the shares.
“So, we still have a large chunk of those shares, and anytime dividends are paid, those shares are not claimed and those people don’t get their dividends”.
Until the number of unclaimed shares goes down, the unclaimed dividend problem will continue.
On the way forward, Umeano assured that the commission would continue to put pressure on all the people involved in order to end the problem of unclaimed dividends.
He called on investors to go and prove ownership of their shares, noting that SEC was not prosecuting anybody.
“SEC has given them amnesty to go and claim their shares and as people are claiming those shares, unclaimed dividends number will go down” he added.
Dividend is company’s earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders. The earnings turned unclaimed when a shareholder fails to take ownership of an already paid dividend after six months.
By Abimbola Oloyede
SECURITIES and Exchange Commission, SEC, has urged all the shareholders who have not been able to claim their dividends to come forward and claim them.
The SEC said this recently, adding that over N158.4 billion dividends have not been claimed by the owners.
The SEC stated that the figure has continued to increase despite the introduction of e-dividend in 2015.
The commission further stated that from N100 billion in 2017 to N120 billion in 2018, has increased to N158.4 billion at the end of 2019, representing an increase of 32 per cent. N120 billion which was recorded in 2018, about N100 billion of the amount is from unclaimed shares.
The breakdown, according to the report, showed that unclaimed dividends with companies (15 months and above) stood at N119.01 billion. The ones with registrars amounted to N14.64 billion and unclaimed dividend less than 15 months old stood at N24.77 billion.
Stating the reason for the rise in unclaimed dividend, Head, Office of the Chief Economist, SEC, Mr Okey Umeano, explained that value has been on the increase since the market has been witnessing increase unclaimed shares.
He said, “The main issue why unclaimed dividend is rising is because we have a large number of unclaimed shares.” According to him, many investors during the banking consolidation bought shares with different names as well as other people’s names which they were yet to rectify. “As companies declare dividends, those accounts would equally be paid, leading to an increase in unclaimed dividend figures.
“The commission introduced a forbearance window for multiple accounts to enable investors that bought shares with different names to regularise their accounts in order to reduce the quantum of unclaimed dividends.
“SEC gave a window for people to come and rectify the multiple subscription thing.
“Many people have still not been able to claim their own because some of them have forgotten the names they used.
“Some have not been able to prove to their stockbrokers that they are the owners of the shares.
“So, we still have a large chunk of those shares, and anytime dividends are paid, those shares are not claimed and those people don’t get their dividends”.
Until the number of unclaimed shares goes down, the unclaimed dividend problem will continue.
On the way forward, Umeano assured that the commission would continue to put pressure on all the people involved in order to end the problem of unclaimed dividends.
He called on investors to go and prove ownership of their shares, noting that SEC was not prosecuting anybody.
“SEC has given them amnesty to go and claim their shares and as people are claiming those shares, unclaimed dividends number will go down” he added.
Dividend is company’s earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders. The earnings turned unclaimed when a shareholder fails to take ownership of an already paid dividend after six months.
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