Muhammadu Buhari PHOTO: Twitter
• Shareholders kick over unclaimed dividends
• Govt has no business with fund, economists, securities expert warn
• Reps worry over rising unclaimed dividends
Shareholders, economists and securities expert have reacted angrily to Federal Government’s plan to plough N200 billion unclaimed dividends into its coffers, just as the House of Representatives express the concern that many shareholders have abandoned their dividends.
The Federal Government has, in a section of the 2020 Finance Act proposed the establishment of a Trust Fund where unclaimed dividends would be ploughed.
But investors, yesterday, urged President Muhammadu Buhari to withhold assent to the bill until the contentious section was expunged.
The new provision conflicts with the previous one in Companies and Allied Matters Act (CAMA) that guarantees a 12-year statute of limitation on unclaimed dividends, after which the fund would be ploughed back into the company that declared…
Source: Guardian Newspaper
