SEC proposes rule for 12-year-old unclaimed dividend

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The Securities and Exchange Commission has proposed that companies and registrars in custody of dividends, which remain unclaimed by shareholders 12 years after the date of declaration or subsequently attain the 12 years threshold shall upon the coming into effect of the new rule transfer such monies into the Nigerian Capital Market Development Fund.

The Commission, on its website, said the move was in pursuant to the provisions of Section 313(1) (n) of the Investments and Securities Act 2007.

The notice read in parts, “All companies and registrars shall not later than 30 days after the end of every calendar year forward to the Commission a report of unclaimed dividends in their custody, which shall specify compliance with sub rule (1) of this rule. “Companies shall disclose details of compliance with this Rule in their annual reports.

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