The Securities and Exchange Commission (SEC) has directed all public companies and their Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred,” particularly those dating back before the enactment of the Finance Act 2020.
According to a circular posted on the Commission’s website yesterday, the directive reinforces Section 60 of the Finance Act, which mandates that dividends unclaimed for six years or more be transferred to the Unclaimed Funds Trust Fund (UFTF). These funds are to remain accessible to shareholders until valid claims are made.
The SEC clarified that shareholders are still entitled to claim dividends unclaimed for less than 12 years as of December 31, 2020, when the Finance Act came into effect.
“The attention of the SEC has been drawn to the fact that some companies and Registrars are still treating unclaimed dividends older than 12 years as statute-barred, contrary to the Finance Act 2020,” the circular stated.
The Commission emphasized that until the UFTF is fully operational, companies and Registrars must continue honoring legitimate requests from shareholders regarding such dividends.
In addition, the SEC instructed full compliance with the directive and called for periodic reports to be submitted in line with its Rules and Regulations.
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