According to the SEC, the value of unclaimed dividends and shares hit N158.44 billion at the end of 2019, while unclaimed shares account for over N100 billion.Shareholders argued that the lack of synergy between stockbroking firms, the Central Securities Clearing House , and registrars pose a serious threat to the Commission’s determination to ensure that problems associated with unclaimed dividends are resolved.
The President of the New Dimension Shareholders Association, Patrick Ajudua, stressed the need to adopt a holistic approach in resolving the issues. He argued that if the current stringent procedure of dividend claims of deceased persons was reviewed, it would reduce the problem.According to him, several beneficiaries have abandoned their dividends with registrars because, in most cases, the cost of processing the claims is too high compared with the value of the shares.
He said: “Much as some unclaimed dividends result from legacy issues, we need to put in place an enduring mechanism to address future occurrences. There is a lack of synergy between stockbroking firms, CSC, and registrars. The broker is the first port of call for shareholders and has a database of the respective shareholders, their account details and those of beneficiaries in case of death must be duly filled before uploading data unto the CSCS.“The legal process is another issue.
The Publicity Secretary of Independence Shareholders Association of Nigeria, Moses Igbrude, said finding a lasting solution to the issue required a collaborative effort of all stakeholders.