Senate moves to provide utilization for N104bn unclaimed dividends, savings

By Henry Umoru
ABUJA- THE Senate has begun moves to checkmate handling of unclaimed dividends at the stock market by the Security and Exchange Commission ( SEC) and funds that in dormant accounts by Commercial Banks worth N104billion.

According to the Senate, this would be done through proper legislation.

Speaking yesterday in Abuja at the public hearing organised by the Senator Bukar Mustapha, APC Katsina North led Senate Committee on Capital Market, Senate President Bukola Saraki who noted that there was the urgent need for amendments on some of the extant laws guiding the sectors, said that some of the provisions of the extant laws are obsolete and needed to be remedied as regards utilization of unclaimed dividends and funds in dormant accounts .

The Public hearing was on Investments and Securities Act ( ISA) 2007 ( Amendment) Bill 2018 and the Unclaimed Funds Bill 2018.

Represented by the Senate Minority Whip, Senator Philip Aduda, the Senate President said, “This problem can only be solved through amendments to existing Acts of Parliament such as ISA 2007 and CAMA 1999.
“For instance the Companies and Allied Matters Act ( CAMA) 1999 have placed restrictions on the number of years a shareholder can claim dividend of a Public Limited Liability Company .

“Section 385 of CAMA 1999 provides a window of only 12 years after which a shareholder can no longer access the dividend warrant declared by the companies .

“While the law is silent on what happens to these unclaimed dividends , section 382 gives Public Limited Liability Companies powers to utilize these funds without hindrance or permission by the shareholders It is therefore imperative that these impediments are eliminated to enhance investors’ confidence in the Nigerian Capital Market “.

According to him, similar amendments were required to be carried out in the banking sector through the unclaimed Funds Bill 2018, adding that over the years, financial institutions in the country have had unfettered access to unclaimed funds from dormant banks accounts ; outstanding share certificates ; uncashed dividend warrants ; unclaimed insurance proceeds ; unclaimed pension benefits; unclaimed contributions to the National Provident Fund etc, which the bill is set out to tackle .

He said, “To this end, the enactment of the Unclaimed Funds Bill 2018 will make idle funds available for National Development.”

Earlier, the Chairman of the Committee, Senator Bukar Mustapha, APC Katsina North said that the enactment of the intended bills will provide utilization for the unclaimed dividends and funds estimated to be N104billion now.

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source https://www.vanguardngr.com/2018/02/947820/