Ever wondered how many companies’ shareholdings you have and why you no longer receive dividend warrants? The answer is that the capital market has undergone some digital over-haul and each shareholder is expected to move with the times by getting registered electronically and applying for the receipt of dividends directly paid to his/her bank accounts. This article helps to assist shareholders to know what steps to take to achieve a digitalized shareholding.

  1. Do a global search at the CSCS-

When buying shares and stocks was the thing to do, people would usually just give money to stockbrokers to buy shares at the brokers discretion. Oftentimes, some are not aware of how much shares they own or how many companies they have bought into. This makes the CSCS the first point of call for the search of shares. This will involve routing the request through a stockbroker.

Simply type in your first and last name and click on the search button. It will cull up all shares in your name combination, the share account number, the company and the Registrar handling the shares of that company. Note that a search through the SEC website can sometimes not be exhaustive. So you may still have to resort to the CSCS if you have proof that some poof your shares are not included in the result on the SEC website.

  •  Fill the E-Mandate form of the appropriate Registrar-

When you find your name on the website or if you have details of your shareholdings, proceed to fill an E-mandate form of the appropriate registrar. Each public company has a registrar that handles its shares matters. You can find the e-mandate form of each registrar here. Download the appropriate form, fill it and take it to your bank to sign it. For some Registrars, the bank will be responsible for passing the e-mandate form to the registrars and you will get arrears of dividends (if any) from about a month from the submission of the e-mandate form.

Well, at times, it is not that straightforward. Let’s look at two situations that require further steps to be taken.

  1. Married Women                        

Okay, so the Registrars will not pay into an account that is not the same name as the name on their database. Even your signature must be the same as what they have. So here is what you need to do to regularize your status and be well-positioned for e-dividends.

  1. Write an application letter to the registrar notifying them of the change of name.
  2. Attach your marriage certificate, sworn affidavit of change of name and the full page of the newspaper where the notice of your change of name appears.
  3. Attach also a valid means of Identification and
  4. Get a Banker’s confirmation of signature.

You can scan all these to the Registrars or submit it physically at their office.

2. Shares belonging to deceased persons.

Where the shareholder has died, the administrators of the estate will apply for the e-mandate to be paid into the estate account.

Where the Registrars are satisfied with the e-mandate and any other necessary documents where applicable, the dividends will be paid accordingly.

Need help with shares matters? Get some assistance here.

Published by Damilola Abayomi

Damilola Abayomi is a legal practitioner and analyst, blogger and entrepreneur.

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