Proposed New Rule On Unclaimed Dividends (E- Dividend Mandate)
Name/citation of the Rule(s)- E- DIVIDEND MANDATE
1. Rules on E-Dividend Mandate
a) These rules shall apply to all unclaimed dividends below 6 years.
b) All Registrars shall ensure that all mandated accounts are credited with outstanding unclaimed dividends within 48 hours of receipt of the edividend mandate by shareholders.
c) Registrars shall forward a status report of all mandated accounts to the Commission on quarterly basis which shall contain amongst others:
a) A list of requests by shareholders;
b) Number of requests processed;
c) Number of successful requests;
d) Number of unsuccessful requests with reasons.
d) Where a Registrar fails to comply with Rule 1 (b) and (c) of these rules and regulations, such Registrar shall be liable to a penalty of a sum not less than 25% of the unremitted amount and N50,000 for every day the violation continues.
To serve as a deterrent to Registrars and ensure prompt compliance. These rules will also reduce the quantum of unclaimed dividends in the custody of the Registrars as well as discourage Registrars from keeping unclaimed dividends.
2. Reporting of income earned from unclaimed dividend:
Provided that the Registrars may also be required to make other reports on unclaimed dividends as may be requested by the Commission from time to time.
To ensure that there is full compliance by the beneficiary public companies and to determine the contribution of unclaimed dividend funds in the performance of the public companies.
All comments and input should be forwarded by e-mail to the Secretariat, Rules Committee of the Commission, at email@example.com or by letter addressed to the Director-General, SEC, not later than two (2) weeks from date of publication.