The Securities and Exchange Commission (SEC) directs all public companies and Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred”, particularly those dating back to before the Finance Act 2020 took effect.
The Commission clarifies that this directive upholds Section 60 of the Finance Act, mandating the transfer of unclaimed dividends over six years old to the UFTF for safekeeping until shareholders claim them.
The SEC states that shareholders can claim their dividends that are not statute-barred, specifically those less than 12 years old as of December 31, 2020. The Commission clarifies that paying companies and Registrars have wrongly labeled unclaimed dividends over 12 years as “statute-barred”, disregarding the Finance Act 2020 provisions.
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The SEC clarifies: According to Section 60 of the Finance Act 2020, public companies listed on the Nigerian Exchange Limited must transfer unclaimed dividends to the Unclaimed Funds Trust Fund (UFTF) after six years or more. The UFTF will hold and manage these funds until shareholders claim them.
“Pending the setting up and operationalisation of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020”.
The Commission directed public companies and Registrars to effect immediate compliance with the directive and submit periodic reports on the same in the manner prescribed in the Commission’s Rules and Regulations.
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