Mr. Mounir Gwarzo, Director-General, the Securities and Exchange Commission (SEC), says 80 per cent of the registrars operating in the nation’s bourse have complied with the commission’s directive on unclaimed dividends.

Gwarzo stated this at the second quarter Capital Market Committee (CMC) media briefing held on Wednesday in Lagos.

The News Agency of Nigeria (NAN ) recalls that the commission on June 2 directed all Registrars of Public Companies to return all unclaimed dividends, which have been in their custody for 15 months and above, to the paying companies.

It said that registrars were required to file evidence of remittance not later than June 30, 2015.

The commission noted that failure to comply with this directive shall attract appropriate sanctions without further recourse.

He said that the remaining others had written to the commission seeking for an extension for some obvious reasons.

Gwarzo said that the commission had granted them an extension, noting that all registrars must comply at the expiration of the extension date.

He said that the commission would stick to the existing unclaimed dividend law in the market.

“The law on unclaimed dividend in the market is very clear and it states that unclaimed dividend must be returned to the companies after 15 months of payment and remains statue bar after 12 years,” he said.

The director-general said that the commission would not act otherwise unless the laws were amended.

NAN also reports that shareholders had kicked against the commission’s stance on unclaimed dividend.

They said the commission should first seek amendment of the Companies and Allied Matters Act (CAMA) before issuing the directive.

Mr. Bayo Adeleke, National Secretary, Independent Shareholders Association of Nigeria (ISAN), said that the commission was extending an unauthorised overdraft to companies.

Adeleke said that quoted companies would use the money in their operations, noting that it would be difficult for shareholders to access such dividends.

“The law,” Adeleke pointed out, “Is clear on the issue, it takes 12 years for dividend to be statute barred and revert to the company. Registrars are major link with shareholders on dividend issue.”

Adeleke said that the directive should be reversed because “where a rule negates a law, the rule cannot stay.”

Mr. Boniface Okezie, National President, Progressive Shareholders Association of Nigeria (PSAN), said that the commission’s directive must be applied with caution.

Okezie said that the commission should initiate a bill at the National Assembly to seek review of 12 years statute-barred placed on unclaimed dividends in the market in Section 383 of CAMA.

He said that statue bar placed on unclaimed dividend should be repealed before unclaimed dividends could be reverted to the companies.

Okezie said that SEC was relying on Section 372 which stated that dividend declared by companies after 15 months may be called back by the company if shareholders concerned fail to claim the money within that period.

The activist called on shareholders to claim their dividend once declared or to embrace the electronic dividend platform to curd the issue of unclaimed dividend in the market. (NAN)

•Photo shows SEC DG Mounir Gwarzo.