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SEC proposes rule for 12-year-old unclaimed dividend

By on August 25, 2016

The Securities and Exchange Commission has proposed that companies and registrars in custody of dividends, which remain unclaimed by shareholders 12 years after the date of declaration or subsequently attain the 12 years threshold shall upon the coming into effect of the new rule transfer such monies into the Nigerian Capital Market Development Fund.

The Commission, on its website on Tuesday, said the move was in pursuant to the provisions of Section 313(1)(n) of the Investments and Securities Act 2007.

The notice read in parts, “All companies and registrars shall not later than 30 days after the end of every calendar year forward to the Commission a report of unclaimed dividends in their custody, which shall specify compliance with sub rule (1) of this rule.

“Companies shall disclose details of compliance with this Rule in their annual reports.

“All comments and input should be forwarded to the Secretariat, Rules Committee of the Commission, via,[email protected] or through the Director General, SEC, not later than two weeks from the date of publication.”

SEC recently issued a directive mandating registrars operating in the Nigerian capital market to end issuance of electronic dividend warrant to investors  by June 31, 2017.

 

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