By Peter OBIORA investadvocate

Nov 16 2010 06.56 GMT

Lagos (INVESTADVOCATE)- Public hearing on unclaimed dividend is now scheduled to hold between November 24 and 25 2010 in Abuja Nigeria. This was contained in a document obtained by investadvocate recently from the Committee on Capital markets National Assembly.

 

According to the document, the Bill will lead to an Act that would establish among other things unclaimed dividends and Abandoned Property Trust Fund.

 

The Fund will be charged with the responsibility for identifying and maintaining database of unclaimed dividends, Abandoned Property and investments in Banks, Financial Institutions and Public Companies in Nigeria.

 

Functions of the Board of the Fund investadvocate gathered shall be to maintain database of unclaimed dividends, abandoned property and investments.

 

The Board shall also identify all unclaimed dividends and abandoned property in banks, financial institutions, and public companies.

 

They shall also carry out public enlightenment on unclaimed dividends and abandoned property and make payment to owners of the unclaimed dividends and abandoned property recovered from Banks, Financial Institutions and Public Companies.

 

Other functions are to approve participating Banks that deal with the Fund; inspect and examine books and records of Banks, Financial Institutions and Companies in Nigeria covered by this Bill.

 

The Board of the Fund shall invest the monies in the Fund in viable companies and receive all unclaimed dividends and abandoned property.

 

Financial provisions of The Fund shall establish and maintain an account to be known as investment account into which shall be Paid in the following; all outstanding unclaimed dividends held by Public Companies or dissolved Public Companies and their agents declared within 30 years preceding the commencement of this Bill.

 

Also, to be paid into the investment account shall be all abandoned and dormant bank deposits and investments within 30 years proceedings the commencement of the Bill.

 

As earlier reported, Shareholders of publicly owned companies have vehemently opposed the Unclaimed Dividend Bill about to be passed by the House of Representatives.

 

Sir Sunny Nwosu, Shareholder Leader and National Coordinator, Independent Shareholders Association of Nigeria (ISAN) had in late July 2010 reacted to this Bill as proposed by the National Assembly.

 

Nwosu had affirmed that what determines unclaimed is after 15 months (one year and three months) after which a company is entitled to take back the funds and keep for the investors. “In fact what determines unclaimed is that after 15 months, the company will take back the funds and put it in a save custody for the shareholders” he said.

 

Sir Nwosu again confirmed to investadvocate of the existence of a law in Nigeria making dividend unclaimed until after a period of 12 years.

 

“There is no need tampering with people’s future by passing a law to empower some individuals to take what does not belong to them; just like the Central Bank of Nigeria (CBN) is doing currently wanting to sell what does not belong to it.

Before this time, Apex Capital Market Regulatory Institution, the Securities and Exchange Commission (SEC) had affirmed that unclaimed dividend was N2.09 billion as at third quarter (Q3) of 1999, and then the figure rose significantly over the years to about N17.9 billion as at December 2008. This shows an increase of 756.46 percent (756.46%) in the review period of N2.09 billion in 1999 to N17.9 billion in year 2009.

 

Now unconfirmed Reports put the amount of unclaimed dividend in Nigeria to an estimated N20 billion.