Most companies have realised the power of using modern day technology to share corporate information to their shareholders and other stakeholders. For example, companies can build a virtual data room online and give subscribers access to view documents relating to the company. This is particularly useful when you are looking to do a merger and acquisition or looking for financial support from investors or banks and want to give them access to your financials without doing that physically.
It is no wonder quoted companies in Nigeria now prefer to digitalise their annual report having them included in CD’s and online for shareholders to view. Unfortunately, this has met with some back clash in Nigeria as a lot of them do not like it. It was strange to read some of the reasons why they hate CD or digitalised contents. Check out some of their reasons below as culled from Vanuguard
Akin Gbesumi
The reason why I oppose giving Annual Report and Financial Statements to shareholders using CD- rum is because there is need to download the reports for proper study which is not possible when an investor does not have the required device with which he can do this.
If you have to go to the computer centre or café to do that, it will require a lot of money from you compared to what they are giving to you as dividend. How much are they giving? Sometimes, they give 50kobo per share and at other times, all they declare is 10 kobo.
But when you talk about the e-dividend, that one is better. But at the same time, the banks are creating problem for shareholders; they slow down the process by asking shareholders to go and verify their signature which suppose not to be the case.
So, if this problem can be taken care of, then e-dividend will be able to take its rightful position, because aside this, it is a very good initiative to collect dividend through electronic means compared to the old system of posting dividend warrant.
Obiora Muogbe
If you have the hard copy of the annual report, you can study the report well. When you do that, you will be able to comment during the Annual General Meeting.
The e-dividend is very good because I am using it and I know how much of my time and other resources have been saved in accessing my dividend. And I can tell you that there is no difficulty with the process, that is why I use it in all the over 100 companies where I have my shares. All it requires of you as a shareholder is to collect the papers, take it to your bank(s) or registrars(s) for their signatures and you will find out that, that is all it takes before your money is paid into your account.
This is how it works, if any company declares dividend today, and you are the type that operates the e-dividend form of payment, you will get the bank alert the second day. And for some companies, immediately they declare, within the next two hours, you will be informed that the money has entered your account.
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