- Post by Admin on sunday, March 05, 2015
Discordant tunes have continued to trail the Securities and Exchange Commission (SEC's) move to establish Unclaimed Dividend Trust Fund (UDTF), even as capital market investors urge the regulators to simplify letters of administration for the families of deceased persons to facilitate access to dividend claims.
Investors, described the trust fund as unnecessary and conflicts with the provisions of the Companies and Allied Matters Act (CAMA), upon which the laws governing shareholders' unclaimed dividend in the nation's capital market is currently derived.
The law guarantees a 12 year statute of limitation on unclaimed dividends, after which the fund is ploughed back into the company that declared the dividend. Explaining their aversion to the proposed fund, investors noted that experiences in the past have shown that any fund under the supervision or control of the government is misappropriated and converted for other uses.