Shareholders have urged the Securities and Exchange Commission (SEC), registrars, and stockbrokers to make the claiming processes of unclaimed dividends more seamless.
They recently had their say while reacting to the continuous rise in unclaimed dividend figures of banks and other companies.
Speaking during the gathering in Abuja, National Coordinator, Pragmatic Shareholders Association, Mrs Bisi Bakare, revealed that the administrative cost, delays and bottlenecks faced by probate are currently making more people avoid dividend claims
According to her, the process of claiming dividends cannot continue to be stressful and cumbersome, and the fact that several shareholders and their family members are sometimes unaware of their investment in a particular share has to be addressed.
Listing factors that have resulted in the rise in unclaimed dividends, Bisi said that fictitious names used in buying shares during privatisation and relocation also play a key role in the rampant neglect.
“Many shareholders purchased multiple shares that they cannot remember the names used and many of them have also relocated before the introduction of e-dividend, hence, no update on account to pay their dividend into.
Many shareholders are late now, and there is no proper estate planning, no will, no update on their records to transfer the shares.
In fact, many shareholders, their wives, husbands or children are not aware of their investment in the share.
How do you want them to claim what they are not aware of?
Also, the issue of probate; its administrative cost, delays and bottleneck, the role of registrar and sometimes intentional frustration encountered by shareholders in claiming their money contribute to reasons why unclaimed dividends are growing,” she said.
Also speaking, National Coordinator, Independent Shareholders Association of Nigeria, Mr Moses Igbrude, insisted that all stakeholders must unite to educate shareholders and probate on what to do to claim their dividends.
He is of the opinion that Registrars should also learn to reach out to several shareholders via their contacts and remind them about their investments.
“If people in Lagos can have unclaimed dividends, what will happen to all those people in the rural areas who do not know anything.
On unclaimed dividends in banks, the bank can generate money out of the system, to be calling these people, shareholders, to let them know they have unclaimed dividends with them.
So, if the stakeholders are really sincere, a multi-dimensional approach is what we need if we actually want to address the issue.
The company, the stockbroker, the registrar will get involved, and the association will get involved, so that education will continue,” he added.
