Shareholders on Monday called for collaboration of capital market operators involved in the e-dividend value chain to tackle the high rate of unclaimed dividends in the market.
The shareholders in interviews with the News Agency of Nigeria (NAN) in Lagos, urged all players in the value chain to play their part in driving the initiative effectively.
NAN reports that e-Dividend is the payment of dividend due to a shareholder through a direct credit into his or her nominated bank account rather than issuance of cheques or warrant.
They lamented that some investors still find their names under the unclaimed dividends list even after enrolling for the e-dividend initiative meant to improve capital market activities.
The shareholders stressed the need for regular update of unclaimed dividends data by registrars and quoted companies to avoid misinformation.
Chief Timothy Adesiyan, a former President, Nigerian Shareholders Solidarity Association urged registrars to cross check unclaimed dividend lists to remove names of those already captured under the e-dividend.
Adesiyan said that shareholders were happy with the e-dividend initiative but there was still a lot to be done by the regulators in the space.
He also complained about the list of unclaimed dividends published in some national dailies which he considered illegible.
“The enrollment for the e-dividend is not giving us any headache but rather it is a relief because once you are enrolled into the scheme, dividends will be credited directly into your account.
“Another challenge is that when these companies publish the list of shareholders in the media, you find it difficult to read them.
“They are not legible, you cannot see the names, so the purpose of which they are publishing the names is defeated,” he said.
According to Adesiyan, it is a good initiative, we are enjoying it and we are cooperating with the initiative.
“What the registrar’s should do is, when they are sending unclaimed dividend list, they should cross check some of those names that have been captured into the e-dividend format, if that is done, they will be helping us a lot.
Mr Moses Igbrude, the immediate past Publicity Secretary, Independent Shareholders Association of Nigeria told NAN that it was evident that there was a disconnect between the regulators, stockbrokers and others in the value chain.
According to Igbrude, shareholders in the hinterlands are facing challenges with the e-dividend scheme and wondered why newly listed companies in the stock market still have unclaimed dividends.
“A lot of shareholders are having challenges with the e-dividends scheme, especially those in the hinterland, apart from the percentage of those who have keyed into it.