How to claim unclaimed dividends in Nigeria
How to claim unclaimed dividends in Nigeria? This article will show you how it’s possible to verify your dividends and then claim them. It means that you will have the full access to your dividends account! Just check this list of FAQ about dividends in Nigeria!
What are dividends?
A lot of people may not understand the very meaning of dividends. That’s why it’s necessary to start from the very beggining before going to how to claim unclaimed dividends.
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In other words, dividends are considered to be the returns of shareholders of the company. Therefore, when the company gains profit, the shareholders receive a part of these dividends. The dividends are to be paid periodically and the approved period is to be stated at the Annual meetings.
How are dividends paid?
All dividends are to be issued through the dividend warrants. They can be transferred to a shareholder in any of the convenient ways. Therefore, it’s more than possible to get the dividends on the bank account or any of the online accounts. The dividends can also be paid via post office or on any e-bonus accounts. Nevertheless, these bonus accounts should be directed by the company itself.
What types of dividends exist in Nigeria?
Nigeria provides the possibility of the existence of script dividends and cash dividends. The cash dividends are to be paid periodically, and they are contributed by the profits of the company. At the same time, these dividends can be paid even if the company is liquidated. Nevertheless, in this case, the creditors get their hands on money first and then shareholder can divide what is left from that.
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There are also bonus issues that can be paid to the shareholders, but they are to be paid not in cash. All the portions of the dividends provided by shareholders can be sold again according to the ideas of shareholders.
If you are a shareholder and you didn’t get your dividends
You would not receive dividends if you purchased the company shares when the register is closed. It’s called the ex-div date or cut-off date. It means that you received a piece of share, which is less the amount of dividend per share. Therefore, if your name has not appeared on the register of the company, then you can’t expect any kind of payment from the closure date. Therefore, when you acquire the shares after the closing date, you will receive nothing.
Is it be possible to claim the dividends in any case?
The chances are not in your favour. The unclaimed dividends of the companies are hard to obtain. The first thing to do in such process (if you didn’t buy the shares after the closing date) is to contact your financial advisor. He or she will know the situation and how it actually works for you. The stock certificate or any other document that can ensure your eligibility on the shares.
Companies merge and go out of the business all the time, but it doesn’t mean that shareholders should stay without anything in their hands for existing. One of the best ways to ensure your security in this question is to contact the financial advisor or lawyer. These two professionals should provide you with the whole base for any evidence to claim the unclaimed funds. Nevertheless, you must be prepared that the whole process will take some time.
Procedure to claim unclaimed dividends
The first thing to do is to get the whole list of shares. Visit your stockbroker to request the update list of the stocks that you have right now. It’s also possible to get it printed online. Take a list of share certificates also.
You will also need to obtain the list of the respective Registrar. Every company that exists or existed in Nigeria has this special number called Registrar. This Registrar exists to manage all sharholders within the company.
You will need to sign a share transfer form. It’s in the power of stockbrokers to provide you with a share transfer form to sign. It gives the power to process your unpaid dividends. Do not forget that this service will require a token fee. The fees can be just flat amounts of percentage. Still, stockbrokers can require any other amount of money for their services. Every broker sets his own rates.
Processing e-dividends registration can also be an excellent option to get money back. It merely sets the Register in the position to put credits on your bank account. This process can entirely avoid the whole system of paper dividends. You can also inform your stockbroker that you need to switch to the form of electronic dividends. It may result in more fees, but it will secure what you have right now with dividends.
When everything is done with your broker, you can visit your bank to find out more about the results of your transactions. The bank account will be needed for you as it can require the bank account where you can get you dividends. It’s better to choose one bank account instead of multiple. It can help you to monitor the stream of money closely.
The e-dividend form is needed for your broker and for your bank account also. The broker will take a look at you unclaimed dividends, and you will know what it takes to get them back.
According to the Guardian, the situation with unclaimed dividends is drastic in Nigeria. You can expect that it may only change to better. More than 90 billion Naira is unclaimed for today. There are various reasons for that. Some of these reasons may include the difficulties with the process of claiming the money. Therefore, shareholders may stay without shares for a while!
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Source: Legit.ng
