BY PETER EGWUATU
Registrars have been unilaterally allocating stockbroking houses and stock accounts of shareholders of bank Holding Companies (Holdco), said Central Securities Clearing System (CSCS) Limited.
The Holdcos, namely First Bank Holdco, UBA Holdco and Stanbic IBTC Holdco were created to become the parent company of the bank and its subsidiaries. Hence the shares of the subsidiaries were to be distributed to the shareholders. But rather than allow the shareholders to choose which of their CSCS account or stockbroking house they want the shares transferred to, Registrars, according to CSCS, just transferred the shares as they deem fit, an action tantamount to imposition.
Speaking exclusively with Vanguard, Managing Director, CSCS, Mr. Kyari Abba Bukar, said, “The CSCS is not to be blamed for the error in crediting the stock account of any shareholder and imposition of stockbroking houses. It is the responsibility of the registrars to furnish us the details of shareholder account. It is the information that the registrar sent to us that we make use of when crediting the account of shareholders with a stockbroking house.
Continuing, he said, “ The registrar is suppose to seek the consent of shareholders on which stock broking house they want their account to be credited to, rather than unilaterally choosing for them. You know shareholders have many stockbroking houses they can use to operate their account so it is the duty of registrar to seek their consent before sending any information to us.
“For instance, in the case of Holdco entities that the shareholders observed error, it was the information that African Prudential Registrars supplied to us that we used. They ought to seek the consent of shareholders on which of the stockbroking house they want their account credited with. Even I was also affected; Prudential Registrar just on their own transferred my portion of the share holdings in UBA Plc to UBA Capital and Prudential Registrar to an inactive account. So we are going to let them know this error so that they can educate investors to state which particular account and stockbroking house they want their account to be credited to.”