The unclaimed dividend control tussle between shareholders and the Securities and Exchange Commission (SEC) assumed a perceived negative turn last month, following an announcement by the Securities and Exchange Commission (SEC) in the penultimate Thursday. The outfit disclosed that the N170b unclaimed dividends have finally been remitted to the Unclaimed Dividend Trust Fund (UDTF), which is being managed by the Commission and the Debt Management Office (DMO). The investors suggested that instead of creating a trust fund for unclaimed dividends, the government should simplify letters of administration for deceased families, and make the process of claims less cumbersome for investors. In the view of the Independent Shareholders Association, creating a trust fund is a disincentive to investment, as previous trust funds were marred by allegations of corruption. In Section 39(f) of the Finance Bill, it is stated that all unclaimed dividends that have remained unclaimed for a period of not less than 12 years shall lapse into government revenue, and shall be transferred from the unclaimed dividends trust fund to the federal account as federal revenue.”

Source: The Guardian May 08, 2022 04:47 UTC