Shareholders have kicked against the establishment of an unclaimed dividend trust fund being proposed in the Finance Bill 2021.
The shareholders expressed their displeasure through Independent Shareholders Association of Nigeria (ISAN) .
This disclosure was made in a statement issued and signed by the National Coordinator of ISAN, Dr Anthony Omojola.
Acccording to NAN, Dr. Omojola, disclosed that the creation of the trust fund and transfer of unclaimed dividends into the federation account was uncalled for, as the process may encourage corruption and nepotism to the detriment of the shareholders/beneficiaries of returns on investments.
He explained further that dividends were private wealth of investors, either individuals or corporate entities and that the conversion of private wealth to Federal Government revenue is a violation of the right to own property/assets, as guaranteed by the 1999 Constitution.
According to him, there is an adequate provision that, in the event of failure to claim, such funds should revert to the operations of the companies.
Dr. Omojola concluded that the proposed bill would not serve the interest of shareholders, as it would only cause unwarranted hardship and misappropriation of shareholders’ investments and funds.