Mr. Moses Igbrude, spokesperson for Independent Shareholders Association of Nigeria, ISAN, in this interview spoke against plans by the Securities and Exchange Commission, SEC, to transfer unclaimed dividend to the proposed Capital Market Development Fund. Excerpts:
WHAT is your take on plans by the SEC to transfer unclaimed dividend to Capital Market Development Fund?
Unclaimed dividend is the property of retail shareholders and becomes the property of the company that paid it after 12 years period that the shareholders could not claim it as stipulated by law.
The contract of shares offering and purchase is between the company and shareholders. Subsection 123 of Companies and Allied Matters Act, CAMA has spelt out what to do in case there is a breach of contract. So, transferring of unclaimed dividend to a trust fund is not acceptable to the shareholders and we will…
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