By Ade Jacobs
The Independent Association of Nigeria (ISAN) has kicked against the establishment of Unclaimed Dividend Trust Fund proposed in the Finance Bill, 2021.
This disclosure was made in a statement issued and signed by the National Coordinator of ISAN, Dr Anthony Omojola.
According to the Securities and Exchange Commission (NSE), the total value of unclaimed dividend in the Nigerian Capital Market stood at N158.44 billion, with over N100 billion of that amount being unclaimed shares.
SEC also revealed that the figure has been on the increase despite the introduction of e-dividend, which was introduced by SEC in 2015, even as it projected that the value of unclaimed dividends would hit over N200 billion by the end of this year.
Dr. Omojola said that the creation of the trust fund and transfer of unclaimed dividends into the Federation Account was uncalled for, as the process may encourage corruption and nepotism to the detriment of the shareholders/beneficiaries of returns on investments.
The ISAN leader said, “We want to say the proposed bill will not serve our interest now and in the foreseeable future. In fact it would cause unwarranted hardship and misappropriation of our investments.
“For this and other numerous reasons, we plead that the proposed Finance Bill, 2020, Part 1V, be expunged.
“Dividends, including unclaimed dividends, are fund generated by private companies and made available to shareholders in line with provision of CAMA.
“Unclaimed dividends belong to shareholders of companies, and there is adequate provision that, in the vent of failure to claim, such funds should revert to operations of the companies.
“There are good structures around this positions; government should enhance the structures.
“We are an association of over 10,000 members spread all over Nigeria. Our avowed interest is the protection of the cherished values and welfare of shareholders in general- members and non-members, nationwide,” ISAN said.