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The
moves by the House of Representatives committee on capital market to
revisit the unclaimed dividends issue has been described as
overzealous, in the light of more pressing national issues.

The
contentious issue of unclaimed dividend has been a long standing one.
The Securities and Exchange Commission (SEC) has proposed to set up a
body to take the funds off the books of the companies to be managed
separately. The amount has risen to nearly N20 billion over the years,
while the last attempt to set up the fund was rejected by the National
Assembly in 2006 due to public outcry.

The
latest move seeks to lump the unclaimed dividend with other funds under
the Unclaimed Dividends, Dormant Accounts and Abandoned Property Bill,
for which a public hearing was held last week.

Correct approach

The
Capital Market Solicitors Association (CMSA) said the issue should be
resolved with consideration for the interest of the heirs of the owners
of the unclaimed dividends.

“We
think that the correct approach is to have an agency, which can be SEC,
with power to investigate and trace the next of kin of owners of
unclaimed dividend. The company with claimed dividend is to be made
obliged to refer to SEC or the agency for investigation once the
unclaimed dividend is outstanding for six years,” the association said.

In
its official presentation to the House of Representatives public
hearing on the matter, the association emphasised the need for
procedures simplification of the processes for replacement of lost or
expired dividend warrants, as well as transmission of shares.

“No
doubt, if the procedure is cumbersome, it has the effect of swelling
the proof of unclaimed dividends, as small holders and even at times
large holders do not see it as worth the effect. They simply abandon
their dividend,” the body added.

No need for bureaucracy

Victor
Ogiemwonyi, managing director of Partnership Investment, a financial
services firm, said the House proposal was predicated on a wrong
premise.

“There
is no doubt about who owns these assets, whether unclaimed dividends or
dormant accounts, the owners exist. Even when they are dead, their
successors in title are there to make a claim today or in the future,”
Mr. Ogiemwonyi said.

He said the idea was another attempt to take away from others what rightfully belongs to them.

“There
is no need to create a bureaucracy to do what is not needed; worse
still, create laws that are not needed. More importantly, the
proposals, if passed into law, will infringe on a fundamental right,
the right to property,” Mr. Ogiemwonyi said.

Boniface
Okezie, chairman of Progressive Shareholders Association of Nigeria,
said the proposed Bill was unnecessary, especially in the light of more
pressing problems besetting the country.

“If the National Assembly have their hands full, they would not
dabble into an issue that does not concern them. Is it their money? No
roads from east to west, north to south. No electricity, educational
system is in shambles, and all the House can do is to deliberate on
unclaimed dividend,” Mr. Okezie fumed.