By Peter Egwuatu
As is to be expected of such a novel idea, the reaction from shareholders to the call for amendment of Companies and Allied Matters Act (CAMA) and  proposed creation of Unclaimed Dividend Trust Fund (UDFT) have been mixed with some shareholders vehemently opposing the initiative, just like there were initial opposition to the on-going reform in the banking sector.

Mr. Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria (PSAN) bears his mind.
Excerpts

Do you think there is need to review CAMA after nineteen years of its existence?
I don’t think there is need to review CAMA completely. The problem with CAMA is that of implementation. Most of the provisions are not adequately implemented. There is corruption in our system.

Until we are able to fight corruption completely the problem will still persist. Corruption is a canker worm that has eaten deep into our society and these need to be eradicated. The regulators are not prepared and ready to implement most of the things that are contained in CAMA. so I don’t see CAMA as the problem but leadership. Our leaders are so corrupt and that makes the system not working.
What is your position on unclaimed dividend as it relate to CAMA provision?

My position on unclaimed dividend is that it should remain with the companies that declared them. The position where CAMA said it should be statute -bared after12 years and the money be invested in other investments by the companies that declare them should be removed. The status quo on unclaimed dividend should be removed from CAMA. We want a situation where beneficiaries could have access to the fund at will. This means that we would want companies to hold on to the unclaimed dividend and use it in running the company’s business  pending a time that the beneficiaries or their next of kin would come for claim. So the issue of statute bared should not be there. What we are after is that beneficiaries should have the right to pick up their dividend whenever they are ready.

So what is your view to proposed creation of UDTF by  SEC?
Well, I completely kick against the creation of the trust fund because government has not been able to manage other related trust funds in the past.  We don’t want the bill to be represented any more because the trust fund would not be viable to us as shareholders. It would serves as a means of siphoning shareholders’ money. Besides, the officials who are going to be in control and management of the fund are likely to be dominated by  government agencies will see it as an opportunity to embezzle and misappropriate our money.Besides, government has no business managing our fund. How can some one effectively manage a fund he or she does not contribute. So we don’t want SEC to represent that bill any more.
How do you think unclaimed dividend would be eradicated or reduced?

Well, I subscribe to the e-dividend regime if it would be effectively implemented. The major cause of the rising unclaimed dividend has been the ineffective postal service. But with e-dividend, the money would be posted directly to the shareholder’ account. So I implore fellow shareholders to hook on to the e-dividend. This will go a long way in checking companies that declare dividend but do not have cash to back it up. The e-dividend should be made compulsory when somebody is subscribing to fresh offer.

In fact e-dividend is a better option that other options.  Also SEC should ensure it monitors the registrars and companies that declare dividend so that once declared it is paid.