SEC to penalise registrars for non-return of unclaimed dividends

The Securities and Exchange Commission (SEC) has said it would penalize registrars who fail to return all unclaimed dividends, which have been in their custody for 15 months and above to paying companies after June 30.

The regulatory body in a circular on its website on Monday directed “all Registrars of public companies to return all unclaimed dividends, which have been in their custody for fifteen (15) months and above, to the paying companies.”

According to the commission, Registrars are required to file evidence of remittance with the Commission not later than June 30, 2015.

“Please note that failure to comply with this directive shall attract appropriate sanctions without further recourse,” the commission said.

It was gathered, that the commission gave the directive as a way of discouraging registrars from holding on to unclaimed dividends for more than necessary.

It was recently reported that the amount of unclaimed dividends rose in 2014. Returns filed by 112 companies as at December 2014 showed a figure of N55.22 billion, up from the N50.9 billion in 2014.

Meanwhile, SEC has also reminded market operators that the September 30, 2015 deadline for recapitalisation still stands. The commission had shifted the deadline from December 31, 2014 to September to enable operators comply.

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