By PROVIDENCE OBUH & OMOLARA SHONIBARE

Vitafoam Nigeria Plc has revealed that the value of its unclaimed dividends stands at N147.9 million as at December 31, 2011.

Mr. Samuel Bolarinde, Chairman of the company, who was speaking at its Annual General Meeting in Lagos, expressed concern over the increasing rate of unclaimed dividends in the capital market and advised shareholders of quoted companies to embrace the electronic dividend (e-dividend) policy in order to resolve the incidence of unclaimed dividends.

He charged shareholders to take advantage of the policy initiative for payment of dividends, revealing that the company’s unclaimed dividend figure for the financial year ended December 31, 2011, stood at N147.9 million as against N149.1 million in the previous year.

Giving shareholders assurance that the company would continue with its expansion drive to ensure enhanced returns on their investments, he said, “if the shareholders embrace the e-dividend policy, it would go straight into their individual accounts and the unclaimed dividend figure would be reduced.”

The Securities and Exchange Commission (SEC) had a couple of months ago said that e-dividend will aid in combating the incidence of unclaimed dividend, which it put at about N40 billion.

It disclosed that the system will ensure that shareholders get their dividend credited directly in their bank accounts.
SEC had said that when it was about starting the e-dividend, it spoke with the Banks and it was agreed that dividends would be paid directly into shareholders / investors Savings Accounts, which the Banks accepted.

SEC, however, said it plans to meet with the Central Bank of Nigeria, CBN, to address the controversies surrounding the payment of dividends into the Savings Accounts of shareholders.