The Finance Act 2020 which was recently endorsed by President Buhari and became effective starting from January 1, 2021, talked about unclaimed dividends, let talk about the steps to redeem unclaimed dividends in Nigeria before FG start to borrow the funds.
Recall that the members of the house representative had earlier raised an alarm of over N200billion confined in unclaimed dividends pool and this is quite huge, this seems to be the reason why a new provision was made in the new finance Act 2020.
All unclaimed dividends of at least six years old funds in the pool would be transferred to CBN under unclaimed Funds Trust Fund, this enables the federal government to borrow the reserves for a particular thing or things.
The pool of unclaimed dividends of quoted companies that have remained unclaimed for not less than six years from the date of declaring such dividends can now be borrowed by the federal government, leaving stakeholders with nothing for a particular period.
The steps to redeem unclaimed dividends in Nigeria
Divided is a reward that is payable to company stakeholders, it can be in form of cash payment or stocks. Now, most company’s are locking up dividends which then remains unclaimed dividends, the federal government has now made a law which allows borrowing of the funds. This simply means if you don’t want the government to borrow the dividends you have to claim it.
We have come with ways that can help redeem your unclaimed dividends that are less than six years old in the pool before the federal government takes over to borrow.
The steps are split into four (4) sections and all of these steps are important.
Step 1: the first thing that needed to be done is to obtain the list of shares names from SEC using the link http://sec.gov.ng/non-mandated/. This will help you to know all the companies you have shares with and the registrars.
Step 2: Write down all the names of the registrars of the companies you are having shares with. Registrars are those who help in keeping details of shares/shareholdings.
Step 3: Check the registrar’s company website and download the registrar’s form and then fill it.
Step 4: Submit the filled form to the registrar, electronically or through your bank, then wait to get all your dividends.
Yes, these are the steps needed to redeem your unclaimed dividends.