THURSDAY, 16 DECEMBER 2010 00:00 BY MOSES EBOSELE

THE House of Representatives Committee on Capital Market, yesterday, pledged to abide by the outcome of the recently held public hearing on unclaimed dividend and abandoned property.

Chairman of the committee, Umar Baba Jubril, explained that submissions received from stakeholders during the public hearing are presently being compiled, adding that as soon as it is concluded, it would be presented to the House for considerations.

He explained that it is difficult at this stage to ascertain the outcome of the public hearing and when the committee is expected to conclude its compilation.

Speaking further, Jubril said: “If we have overwhelming evidence, the committee will be guided by that. We intend to submit our findings to the House as soon as it is ready. I cannot tell you when it would be ready”.

While appealing to all stakeholders to remain calm, Jubril said final decision would be influenced by various submissions made during the public hearing in Abuja.

He also used the opportunity to appeal to the Securities and Exchange Commission (SEC) to intensify its investors’ education across the country.

According to Jubril, investors’ education would go a long way to lift the “shallow state” of the nations capital market.

Several investors, including shareholders recently, expressed their opposition to the proposed law, describing it as “selfish and designed to enrich some individuals”

Reacting to the development, National Chairman, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, accused the committee of allegedly trying to deny investors the benefit of their investments.

Specifically, Okezie said the committee have no business legislating on dividends that have not yet claimed, adding that “if an investor dies or is incapacitated, the money will be given to his family or returned to the firm where he or she has investment”.

He explained that most dividends are not claimed because according to him banks do not accept dividend warrants into savings account, adding that opening a current account would result in all sort of deductions.

Speaking further, Okezie appealed to the House Committee to drop the proposed law in the interest of Nigerians, especially the investing public “who invested their hard earned money”. 

Another Shareholder, Mr John Ibhade, who spoke similarly, alleged that through the fund, shareholders’ fund may be misappropriated through the creation of unnecessary offices and positions.

He appealed to the House of Representative Speaker, Hon Dimeji Bankole to prevail on the committee to drop the entire exercise in the interest of peace and fairness.

The bill was first introduced in 2006 as an Executive Bill sponsored by the Securities and Exchange Commission (SEC).  Titled: “Unclaimed Dividend Trust Fund (UDTF)”, the bill was rejected by the House of Representatives then based on mounting opposition from members of the public, especially stakeholders and investors.
SEC had argued that if passed into law, it would give legal protection to unclaimed dividends believed to be more than N20 billion as at that time.

But opponents of the proposed law argued that it was an indirect way by the government to control the fund, adding that any fund that government initiates or is in anyway involved in will be misappropriated.