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Business News

Fears over ₦100 billion unclaimed dividends as e-dividend registration ends

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A cross-section of shareholders in the country have called on the Securities and Exchange Commission SEC to extend the deadline for shareholders to conclude e-payment registration for unclaimed dividends as the fate of over 100 billion unclaimed dividends heighten. SEC, the capital market regulator ended the registration on February 28, 2018.

The shareholders, accused registrars of frustrating the electronic dividend (e-dividend) registration, by not implementing the e-dividend mandate and merging multiple accounts even after investors have registered for the e-dividend.

Chairperson of Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare said

”There have been several complaints from some of our shareholders on the e-dividend registration. The exercise still has some hiccups as shareholders still get dividend warrants in their addresses both old and new. Even the merging of multiple accounts has not recorded the expected results”

Consequently, they requested that the SEC should allow continuation of the free e-dividend registration exercise, claiming that most registrars do not have the capacity in terms of manpower and technology to meet the deadline.

The e-dividend was introduced to address the increasing trend of unclaimed dividends in the capital market. The Direct Cash Settlement, DCS was also part of the ongoing initiatives introduced by SEC and Nigerian Stock Exchange to protect investors and eliminate fraudulent activities in the Nigerian capital market.

The DCS which is the direct payment of proceeds from the sales of shares/securities into an investor’s nominated bank account. It is a process where cash proceeds from trades executed by stockbrokers on the Exchange settle directly into investors’ bank accounts.

There have been series of allegations that some operators, especially registrars, trade with the unclaimed dividends in their possession and looking at the quantum of the money available as unclaimed, the commission needs to discourage this act and reduce the number of unclaimed dividends.

SEC launched the e-dividend platform in July 2015 and set December 2015 as a deadline. After protests by shareholders, the deadline was shifted to December 2016. In January last year, it decided to extend it until June 30, 2017. It was again extended until December 31st, 2017 and lastly, February 28 this year. SEC also created a portal, for shareholders to search for stocks they own and register for electronic dividends.

According to Sammie Opeoluwa, a capital market analyst, it is pertinent to note that at the center of the issue of unclaimed dividends is the problem of ignorance on the part of shareholders.

“There is really no cause for alarm as far as the issue of unclaimed dividends is concerned. We need to educate investors at this time that their unclaimed dividends are safe and can still be claimed provided it is not up 12 years as stated in Section 385 of CAMA.”

“Based on this SEC directive, shareholders still need to contact the affected registrars for their unclaimed dividends who will now refer the issue to the paying company after it has been duly verified that they have outstanding dividends to claim before they eventually get paid.”

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Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

1 Comment

1 Comment

  1. ifiokefanausua

    March 5, 2018 at 11:33 pm

    THE REGISTRARS ARE FRUSTRATING THE EFFORTS OF SHAREHOLDERS.
    SEC AND OTHERS AGENCIES OF GOVERNMENT MUST ACT IN UNITY, CSCS, NSE AND STOCKBOKERS PLAY A VERY IMPORTANT ROLE. THE STOCKBROKERS SHOULD MAKE AVAILABLE TO THE REGISTRARS THE SIGNATURE OF SHAREHOLDERS AND ACCOUNTS CAN BE VERIFIED USING THE BVN, SO THAT THE REGISTRARS CAN CONFIRM AND APPROVE PAYMENTS OF UNCLAIMED DIVIDENDS OR ELSE THE INCIDENCE WILL CONTINUE TO INCREASE UNCLAIMED DIVIDENDS EVEN UNDER THE EMANDATE SCHEME. NEW PURCHASE OF SHARES ARE BEING HAMPERED BY REGISTRARS, STOCKBROKERS AND THE CSCS.

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Companies

Peter Obaseki resigns as Director from the Board of FCMB Plc

Mr Peter Obaseki has resigned as a Director on the Board of FCMB Group Plc.

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First City Monument Bank Ltd issues N20 billion commercial paper

The Board of FCMB Group Plc has announced the resignation of Mr Peter Obaseki as an Independent Non-Executive Director of the company.

The notification is part of the decisions reached at the company’s Board meeting held today, 26th of February, 2021.

According to the disclosure signed by the company’s secretary, Mrs. Olufunmilayo Adedibu, the resignation of Mr Obaseki from the Board of the company will become effective from 1st of March, 2021.

In lieu of this, the Board wished the outgoing Director well in his future endeavours and accepted his resignation in good faith. Other decisions reached at the Board of Directors’ meeting include;

  • The Board considered and approved the appointment of an Independent Non-Executive Director, subject to CBN approval.
  • It also considered and approved the Group’s audited financial statements for the year ended December 31, 2020 as well as payment of Dividend, subject to the approval of the CBN.

What you should know about Obaseki:

  • Mr. Peter Obaseki has over 27 years working experience across financial consulting and banking. Prior to joining FCMB Plc in 1997, Mr Obaseki gained valuable experience in firms like KPMG, Ani, Ogunde & Co and some banks.
  • He is a fellow of the Chartered Institute of Bankers and was appointed an executive director of FCMB in September 2008.
  • Apart from being an Independent Non-Executive Director, Mr. Peter Obaseki also doubled as the Chief Operating Officer of FCMB.

FCMB closed trading with a share price of N3.03 as at the 26th of February 2021.

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Corporate Press Releases

AXA Mansard emerges Best Health Insurance Product Winner 2021

The winning product was the AXA Platinum Plus Cover which has been specially designed to provide a world-class health cover for the insurer’s customers.

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Health Management Organization, AXA Mansard Health Limited, recently announced that it has emerged as the winner of the best health insurance product of the year in the Insurance Product & Process section of the just concluded 11th Annual Global Banking and Finance Awards 2021.

The winning product was the AXA Platinum Plus Cover which has been specially designed to provide a world-class health cover for the insurer’s customers. With access to roam over 1,700 hospitals locally, care in India, UAE and South African hospitals and limited in-patient cover in the UK, France, and Germany for up to $1000 in healthcare benefits.

The product provides enrolees with benefits such as twenty-four-hour dedicated Telemedicine service, home vaccination service, free home delivery of special medications, partnership with healthy eating restaurants, and smarter budget-friendly discounts on healthy meals.

Speaking on the award, Chief Executive Officer, AXA Mansard Health Limited, Tope Adeniyi, said “We thank our highly esteemed customers for this prestigious award, as they are the reason, we passionately drive to improve our product offerings and execute innovative initiatives. This award is recognition of our unflinching commitment to our customers and an affirmation of our current position as the leading health insurance company in the country.”

AXA Mansard Health has a twenty-four-hour call centre, a team of highly trained and dedicated professionals, service portals at all AXA Mansard Welcome Centres nationwide and has deployed state-of-the-art technology to attain operational excellence while contributing to prompt service delivery and overcoming of challenges being encountered in the Nigerian health insurance industry.

Whilst thanking the organizers, Adeniyi noted that “the company is counting on the continued support of our stakeholders to continuously provide superior customer experience and to develop more innovative and value-adding products. We will continue to innovate, create new products, improve our product offering and refine our service delivery to ensure we continuously meet the changing needs of our customers”.

AXA Mansard Health Limited is the Health Maintenance Organization (HMO) arm of the AXA Mansard group of companies. The HMO is geared to promote her members’ wellbeing.

The HMO serves all clients across the country virtually and has established functional offices in Lagos (the head office), Abuja, Port-Harcourt, Enugu, with ongoing plans to open offices in other locations.

Global Banking & Finance Review is a leading Online and Print Magazine, which has evolved from the growing need to have a more balanced view, for informative and independent news within the financial community.

Since its inception in 2011, The Awards reflect the innovation, achievement, strategy, progressive and inspirational changes taking place within the Global Financial community. According to the magazine’s publishers the awards were created to recognize companies prominent in their areas of expertise and excellent in financial service delivery.

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