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Business News

Unclaimed dividends: SEC wades in, reduces processing time to 1 week for beneficiaries

The Securities and Exchange Commission (SEC) has moved to find an enduring solution to the perennial unclaimed dividend issue.

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Unclaimed dividends: SEC wades in, reduces processing time to 1 week for beneficiaries
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The Securities and Exchange Commission (SEC) has moved to find an enduring solution to the perennial unclaimed dividend issue. On Wednesday, SEC cut the turnaround time for processing and transferring shares from dead shareholders to their beneficiaries from three weeks to one week.

SEC believes the move will help reduce the humongous amount of unclaimed dividends in the Nigerian Stock Exchange as much as possible.

[ALSO READ: See the top 10 stockbroking firms on the NSE as of May 31st, 2019]

The capital market regulator made the disclosure through its acting Director-General, Ms Mary Uduk, at a sensitisation programme held recently in Lagos under the aegis of the Lagos State Probate Registry.

Why this Matters: The decision will not only help beneficiaries of deceased investors to promptly receive their shares and dividend bequests, it will also guarantee service efficiency on the part of the SEC, which will, in turn, enhance its corporate image.

More so, with the new development, beneficiaries and administrators of the deceased’s estates will have the confidence to approach companies where their benefactors held shares to claim their inheritance.

SEC Building

SEC’s order to Registrars: In order to effect this change, registrars have been mandated by the SEC to effect share transfer from the deceased to beneficiaries within one week of receiving transfer requests from administrators/executors.

[READ ALSO: Airtel fails to get minimum number of shareholders for NSE-listing]

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SEC has also ordered registrars to dispatch the Letter of Administration to the probate registry within 24 hours of receiving it for verification.

Required Documentation Disclosed: The Director-General of SEC went further to reveal the obligations which must be fulfilled, as well as key documents to be provided for the share transfer process to be effectively executed as announced.

One of the obligations is that the administrators/executors are to provide a letter of introduction, introducing themselves as the legal representatives of the estate. This should contain the names, addresses, signatures, and BVNs of the individual Administrators/Executors.

Secondly, the original copy of death certificate from the National Population Commission (NPC), original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public must be provided.

Stanbic 728 x 90

Meanwhile, the Acting SEC DG noted that in the case where the Administrator/Executor is not able to fulfill the aforementioned requirements, the Registrar may require confirmation through insurance, indemnity or interview the SEC stated.

In the meantime, the fee chargeable for transmission of shares by registrars have been reduced to one percent of the total value, additional five percent Value Added Tax (VAT) for shares of N5 million and below, and 0.5 percent of the value and five percent VAT on shares above N5 million with a maximum chargeable amount of N200,000, excluding VAT.

[YOU SHOULD ALSO READ: Stakeholders back SEC’s forensic audit against Oando Plc]

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Ronald Adamolekun is a creative writer with proficiency in journalism, financial reporting, financial analysis and imaginative writing. However, his core competency lies in fiction and short story writing as well as feature writing. He is a graduate of English and Literature from Covenant University, Ota, Nigeria.

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Business

Hyundai and Kia to set up an assembly plants in Ghana by 2022

The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

Why this matters

More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

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Business

Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

What the Minister said

“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

The new passport process

The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

What you should know 

  • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
  • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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