Academy Press advice shareholders to embrace e-dividend system



By Peter OBIORA investadvocate

Sept 28 2010 04.00 GMT



Lagos(investadvocate)-Bashir Idris-Animashaun, Chairman, Academy Press Plc (AP) has advised shareholders of the company to embrace the electronic dividend and bonus (e-dividend/bonus) system of payment in order to guarantee prompt receipt of both when declared.



This was contained in a document made available to investadvocate Friday September 24 2010 in Lagos Nigeria.



“May I use this opportunity to implore you to take advantage of the e-dividend and e-bonus system as this is the best way that you can guarantee prompt receipt of both when they are declared” he said.



As earlier reported, on February 28 2008, The Securities and Exchange Commission (SEC), the Apex Nigerian Capital Market (NCM) Regulatory Agency, through Dr. Shamsudeen Usman, former Minister of Finance launched the e-dividend payment.



Under this system, companies are encouraged to meet the obligations of dividend payment as at when due, which would  eliminate cases of lost of warrants of dividend and allow shareholders utilise the proceed of their investments whenever they so wish.



The Commission has found out that most unclaimed dividends are being used as working capital by companies contrary to the provision of Companies and Allied Matters Act (CAMA), which stipulates that such funds should be invested outside the company.



If a company uses unclaimed dividends in its operations, this distorts its actual financial position and in the event of going under, the unclaimed dividend will also be lost.


Recent reports indicates that unclaimed dividend in the Nation’s Capital Market has hit over N20 billion in year 2010 from N2.09 billion as at third Quarter (Q3) of 1999 to the N17.9 billion reported as at December 2008. This SEC affirmed was obtained from the companies and not from their Registrars.



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