Business

June 11, 2013

Why shareholders reject annual reports, financial statements in CD form

By WILLIAM JIMOH

Akin Gbesumi

The reason why I oppose giving Annual Report and Financial Statements to shareholders using CD- rum is because there is need to download the reports for proper study which is not possible when an investor does not have the required device  with which he can do this.

If you have to go to the computer centre or café to do that, it will require a lot of money from you compared to what they are giving to you as dividend. How much are they giving? Sometimes, they give 50kobo per share and at other times, all they declare is 10 kobo. Or if you are the type that does not have computer system, will you have to go and get it just because you want to access your company’s financial statements and reports?

But when you talk about the e-dividend, that one is better. But at the same time, the banks are creating problem for shareholders; they slow down the process by asking shareholders to go and verify their signature which suppose not to be the case.

So, if this problem can be taken care of, then e-dividend will be able to take its rightful position, because aside this, it is a very good initiative to collect dividend through electronic means compared to the old system of posting dividend warrant.

Obiora Muogbe

If you have the hard copy of the annual report, you can study the report well. When you do that, you will be able to comment during the Annual General Meeting.

The e-dividend is very good because I am using it and I know how much of my time and other resources have been saved in accessing my dividend. And I can tell you that there is no difficulty with the process, that is why I use it in all the over 100 companies where I have my shares. All it requires of you as a shareholder is to collect the papers, take it to your bank(s) or registrars(s) for their signatures and you will find out that, that is all it takes before your money is paid into your account.

This is how it works, if any company declares dividend today, and you are the type that operates the e-dividend form of payment, you will get the bank alert the second day. And for some companies, immediately they declare, within the next two hours, you will be informed that the money has entered your account.

Ajao Adelakun

Most of the shareholders prefer the e-dividend form, because with it, you don’t have to wait for a long time before you are able to get your money. It is even better; as long as you don’t have any change of information as regards your account and phone numbers, your money will always be paid into your account and you will get the alert for the payment without having to even go to your bank.

All shareholders are interested in the initiative, they want it but because they do not know how to go about it, some shareholders often criticise it. But if they go to their registrars, fill the forms and take all the required steps, they will know that it is very fast.

On the other hand, apart from the fact that some shareholders do not have what it takes to use the CD-rum, it is not also very reliable; and that is why they prefer to have the report the way they have always had it, which is also the pattern they are used to.

Babatunde Ogunbona

For me, some of the people that are saying no to e-dividend are illiterates. Many have Saving Account, which the banks allow for use. At the moment, I am having no problem with e-dividend, all that I have seen tells me that those that are yet to embrace it need to do so in order to enjoy the various benefits associated with the plan.

Captain Jenson Fifah

I need to be frank with you, among all the companies where I have registered my e-dividend with, it is only a few of them that are paying the money into my account. Presently, they include: GTB, Access Bank, First Bank, and some other companies, but I am still expecting a lot of them to send because it is better for me to do the e-dividend than having the warrant sent to me.

Having to go to the Post Office and from there to the bank is stressful; it takes time compared to e-dividend which is automatic.