The National Coordinator, ISAN, Comrade Moses Igbrude,

 

 

A group of shareholders under the aegis of the Independent Shareholders Association of Nigeria (ISAN), has taken a firm stance against transfer of unclaimed dividends to the Central Bank of Nigeria (CBN).

The group dedicated to safeguarding the interests of minority shareholders, voiced their opposition in a statement issued over the weekend in Lagos.

The statement, which was officially signed by Comrade Moses Igbrude, the National Coordinator, and Mr. Eke Chibuzor, the General Secretary, articulated their disapproval of the National Assembly’s latest legislative action.

They said, the new law mandates that all unclaimed dividends from registrars be redirected to designated accounts managed by the Securities and Exchange Commission (SEC), opened by the Debt Management Office in the CBN.T

The shareholders argue that this legislation not only undermines their rights as stakeholders but constitutes a betrayal of the trust that investors place in the financial system.

The association expressed concerns that such a move sets a dangerous precedent, potentially jeopardising the integrity of private property rights and diminishing the overall trust in Nigeria’s capital market.

In elaborating their concerns, ISAN emphasised that unclaimed dividends should not be misconstrued as government revenue.

The association strongly contends that the funds belong to the shareholders and should remain within the registrars control until they are claimed.

They believed that the law is likely to create significant unease among investors, both domestic and international, in Nigeria’s capital markets.

The group emphasised that for both local and global investors, the perceived risk of having their earnings confiscated diminishes the appeal of participating in the Nigerian market.

Moreover, the group pointed out that the advancement of this law without engaging in meaningful dialogue and comprehensive consultations with shareholders, registrars, and other vital participants in the capital market reflects a troubling lack of commitment to participatory governance.

They highlighted a significant gap in the proposed legislation regarding the mechanisms the SEC plans to deploy in managing these unclaimed funds.

“Passage of the law without broad consultations with shareholders, registrars, and capital market stakeholders reflects a disturbing disregard for participatory governance and due process.”

In light of these concerns, the association is advocating for an immediate halt to the enforcement of the law.

They appealed to President Bola Ahmed Tinubu, urging him not to endorse this legislation. Should he have already signed it into law, they insist that it be suspended without delay to allow for a thorough judicial review of its implications and consequences.

“Instead of simplifying the claim process for unclaimed dividends, this law adds another layer of opacity and complexity, especially for rural and aging investors who already face hurdles in reclaiming dividends.”

The association called on all shareholders to lend their voices and stand in solidarity against what they perceive as an unjust and detrimental law.