I invested in company XYZ in 2000; I have not heard anything from it since then. No certificate, no dividend, what should I do?

The above is one of the types of complaints received by Investors Forum, almost on weekly basis. It is usually from victims of ‘One-Chance’, investment.

There are significant inefficiencies in the capital market, but the fact is that companies listed on the stock exchange, which are still doing business, posting periodic reports, still ensure they communicate with their shareholders and investors as required by the regulatory authorities. Despite their monumental flaws, the registrars of these companies do try to ensure that all the registered shareholders of these companies are contacted with necessary information.

The communication or correspondences may be late, or delivered to wrong address, but they make attempt to ensure shareholders are updated. So when you have ‘invested’, or bought shares of a listed company for five to 10 years, and you have not received any communication, chances are that you have fallen victim of   ‘one-chance investment’. If you bought the shares through public offer, the registrar should send you your share certificate, and later dividend warrant, whenever the company declares dividend.

If you did not indicate your address properly, or you changed address without informing the registrar, then these documents will be posted to the wrong address.  That is why when we receive complaints such as the one above, we advise the individual to contact the registrar of the company concerned. If the money you paid for the shares was received by the company during the offer, your name will be in the register of members. But if the company did not receive the money, your name will not be in the register. This implies you are a victim of ‘one-chance investment’ decision. The person you gave your money for the shares did not pay into the account of the company that sold shares. He or she just cornered the money for him or herself.

It also happens to those who give money to stockbroking firms or staff of stockbroking firms. We have being receiving complaint from individuals that gave money to staff of stockbroking firms or individuals that own companies that claim to help people buy shares, and they never got dividend from such companies. They had entered ‘one-chance investment’, without knowing.

So, if you are out there and you had bought shares and never received communication from the company, you may have become victim of ‘one-chance investment’. The only way to confirm is to contact the registrar of the company whose shares you bought or was bought for you. If the registrar cannot find your name in the register of members, sorry, your investment entered ‘one-chance’.