By Ade Jacobs
Shareholders of quoted companies in the country have vowed to drag the federal government to court, should it go ahead with its decision to borrow N895 billion from unclaimed dividends and dormant account balances.
The government of President Muhammadu Buhari is making attempt to activate the newly signed Finance Act 2020, which stipulates that the federal government can borrow from the unclaimed dividends and dormant account balances under the Unclaimed Funds Trust Fund.
Reacting to the proposed plan by the federal government, the national leader emeritus, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, said the shareholders cannot trust the government with such funds, insisting that they were ready to take legal action except the plan was shelved.
He said the government can raise funds through many other instruments such as raising debenture, adding that government debentures have been oversubscribed in the past.
Nwosu said “Our shareholder association has one of the highest unclaimed dividends in some of these companies and we are warning them not to release any money to the government until the matter is settled in the court. If you want to take a loan, raise a debenture. After all, the government has been oversubscribing on its debenture. Why do they want to take from shareholders?
“As it is now, it is forceful because if you’re passing a law without the consent of the owner, it is like you forcing it on them that you must take the money. What is stopping the government from continuing to raise debenture?”
He blamed the National Assembly for compromising the Finance Act, noting that the government has failed to engage its members on the issue. He said shareholders will continue to fight for their rights.