Business
Unclaimed Dividends: ‘No Fund Should Be Left Idle’
The Managing Direc
tor Chief Executive of the Rivers State microfinance Agency (RIMA), Mr Innocent Iyalla Harry, has expressed concern over leaving idle some unclaimed dividends that would have been put into productive use.
The RIMA boss who was referring to unclaimed dividends in Nigeria, told The Tide in a chat in Port Harcourt that the fund could be put into use to benefit the poor masses, saying that it would be an error if it is used for the benefit of individuals or companies.
He noted that securities and Exchange Commission (SEC’s) idea of setting up a Trust Fund with the unclaimed dividends would only be a welcomed development if the fund would be effectively managed to help the poor and also yield benefits.
“There is also the need for transparency both in investing and declaration of the profit”, adding that the issue of unclaimed dividends in the country is caused by communication gap between the investor and the company.
Harry also said that microfinance bank is an important segment of a developing country like Nigeria as it helps the small enterprises to grow their business.
As at the end of 2013, the Director of SEC, Ms Arunma Oteh, revealed that unclaimed dividends in the country amounted to N60 billion, adding that the amount represents an increase of 46 per cent or N19 billion over what was recorded at the end of 2011.
Oteh blamed the rising amount of unclaimed dividends on the challenges facing the postal system in the country and said that there is the need for the challenge to be addressed.
It would be recalled that SEC has set up unclaimed Dividends Trust Fund Committee to work out the modalities of re-investing the unclaimed dividends.
However share holders and other stakeholders in the society are yet to buy the idea of the government managing and re-investing the unclaimed dividends.