Also, SEC disclosed that as at December 2010, the unclaimed dividends figure from quoted companies was N33.92 billion. “The inspection report from the Lagos zonal office on the position of the unclaimed dividend fund was reviewed and the findings would be verified further to determine the true position,” SEC states.
In another development, the Managing Director, First Registrars Limited, a subsidiary of First Bank of Nigeria Plc., Mr Bayo Olugbemi, disclosed that less than 30 per cent of investors in the Nigerian capital market have embraced the electronic dividend payment option.
According to him, this is in spite of the numerous efforts made by the market regulators and the Federal Government towards ensuring that the amount of unclaimed dividends in the country was reduced to the barest minimum.
Olugbemi said, “It would be surprising to note that since e-dividend was introduced into the Nigerian market a few years ago, less than 30 per cent of investors in the market have keyed-into the platform. “And this is why the problem of huge unclaimed dividends still persists in our market. Two years ago, the amount was put at about N19bn and it is still on the rise due to the reluctance of investors to embrace the platform.”
He said it was important for more investors to embrace the platform, adding that it had a lot of benefits for investors and also reduced the stress attached to the previous system of dividend payments, including missing warrants and late cheques.
According to him, the proposed setting up of an Unclaimed Dividend Trust Fund is not the answer to the problems, because the proposal is not done in the interest of the shareholders.
“That is why registrars and some other stakeholders opposed the bill because we are aware that such a trust fund was not done in the shareholders’ interest, it may have been proposed to make some people rich; the fact is that this money belongs to the shareholders, and they should be the ones to enjoy it,” he stated
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