How To Claim Unclaimed Dividends In Nigeria

How to Claim Unclaimed Dividends in Nigeria could be a heck. If you have ever bought shares from any company listed on the stock market, that means you’re a shareholder of that company.

That also means you’re entitled to a share of their profits, this is called dividends. In other words, dividends are considered to be the returns of shareholders of the company. The dividends are to be paid periodically and the approved period is to be stated at the annual meetings.dividends

All dividends are to be issued through the dividend warrants. They can be transferred to a shareholder in any of the convenient ways. Therefore, it’s more than possible to get the dividends in your bank account or any online account. The dividends can also be paid via post office or on any e-bonus accounts. Nevertheless, these bonus accounts should be directed by the company itself.

Types of dividends in Nigeria

We have script dividends and cash dividends. The cash dividends are to be paid periodically, and they are contributed by the profits of the company. At the same time, these dividends can be paid even if the company is liquidated. Nevertheless, in this case, the creditors get their hands on money first and then shareholders can divide what is left from that.

There are also bonus issues that can be paid to the shareholders, but they are to be paid not in cash. All the portions of the dividends provided by shareholders can be sold again according to the ideas of shareholders.

How to claim unclaimed dividends in Nigeria

If you’re a shareholder and you’ve not been receiving your dividends, it might be because you purchased the company shares when the register is closed. It is called the ex-div date or cut-off date. It means that you received a piece of share, which is less the amount of dividend per share.

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Therefore, if your name has not appeared on the register of the company, then you can’t expect any kind of payment from the closure date. Therefore, when you acquire the shares after the closing date, you will receive nothing. Getting back your dividends in this case is not easy at all.

However, if you didn’t buy the shares after the closing date, you can make your case. The first thing to do in such process is to contact your financial advisor and present the stock certificate or any other document that can ensure your eligibility on the shares. He will advise you accordingly.

Companies merge and go out of the business all the time, but it doesn’t mean that shareholders should stay without anything in their hands for existing.

One of the best ways to ensure your security in this question is to also contact your lawyer. These two professionals – your financial advisor and lawyer should provide you with the whole base for any evidence to claim the unclaimed funds. Nevertheless, you must be prepared because the whole process will take some time.

Procedure to claim unclaimed dividends

The first thing to do is to get the whole list of shares. Visit your stockbroker to request the updated list of the stocks that you have right now. It’s also possible to get it printed online. Take a list of share certificates also.

You will also need to obtain the list of the respective Registrar. Every company that exists or existed in Nigeria has this special number called Registrar. This Registrar exists to manage all shareholders within the company.

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You will need to sign a share transfer form. It’s in the power of stockbrokers to provide you with a share transfer form to sign. It gives the power to process your unpaid dividends.

Do not forget that this service will require a token fee. The fees can be just flat amounts of percentage. Still, stockbrokers can require any other amount of money for their services. Every broker sets his own rates.

Processing e-dividends registration can also be an excellent option to get money back. It merely sets the Register in the position to put credits on your bank account. This process can entirely avoid the whole system of paper dividends. You can also inform your stockbroker that you need to switch to the form of electronic dividends. It may result in more fees, but it will secure what you have right now with dividends.

When everything is done with your broker, you can visit your bank to find out more about the results of your transactions. It’s better to choose one bank account instead of multiple accounts for your dividend. This will help you to monitor the stream of money closely.

The e-dividend form is needed for your broker and for your bank account also. The broker will take a look at your unclaimed dividends, and tell you what it takes to get them back.

These are ways you can get your unclaimed dividends back. If you’re not ready to follow through with the process, you may never recover your dividends.