The Securities and Exchange Commission (SEC) says shareholders can now claim up to 12 years of unclaimed dividends
In a statement on Tuesday, the commission also directed public companies and registrars to stop treating dividends older than 12 years as statute-barred.
The SEC said its directive reaffirms Section 60 of the Finance Act, which mandates companies to transfer unclaimed dividends over six years old to the Unclaimed Funds Trust Fund (UFTF), which will be held in trust till shareholders claim the dividends.
Emomotimi Agama, SEC director-general (DG), said shareholders can claim dividends up to 12 years old as of December 31, 2020, noting that some companies and registrars have wrongly treated them as statute-barred despite the Finance Act 2020’s provisions.
“In response to ongoing inquiries, the Commission wishes to clarify the proper interpretation and handling of such unclaimed dividends,” Agama said.
He directed companies and registrars to honour valid dividend claims from December 31, 2020, onwards, pending the UFTF’s full operationalisation.
Agama added that companies and registrars must comply immediately and submit regular reports as required under the commission’s rules and regulations.
In August 2024, the commission said the lack of proper identification of investors is a key factor contributing to unclaimed dividends.