BY WILLIAM JIMOH & HANNAH ISIBOR

GODWIN AUGUSTINE:
Stockbrokers have sent so many people to their early graves. They are significantly the reason why people are running away from the market or do not want to buy shares. They sell people’s shares; before you know it while you are in your house,  a broker is trading your shares out there, and at the end of the day if you are fortunate, they will reverse the trade and   if not, that is your luck.

There are cases where these brokers were invited to the Association of Stockbrokers. Let it be on record, the Association invited stock brokers that sold people’s share but none was prosecuted, they escape the punishment they ought to face because the whole matter is like giving the case of a thief to an armed robber to judge.   If you are lucky, they buy back the shares for the poor shareholder but still they have not lost anything because they have made money from the investment. That is another issue that makes many to lose confidence in the whole process.

Some of the registrars are performing well while some are not. Some don’t distribute the annual reports on   time. Some do so maybe three weeks after the AGM which is not good for the shareholders. When you look at the duty of the registrars, they are custodians of shares but in most cases they are found wanting most especially when it comes to the issue of unclaimed dividend. I will also use this opportunity to tell the regulatory authority that there should be a system where shareholders can get their dividend apart from having a bank account.

AWOSANYA ADESINA:
Some stock brokers are not good, I will not mention any of their names here but there are some stock brokers that when you get to their offices, you will not find them there; you will only meet their receptionist who may not be able to attend to you as appropriately.

Many of them are based in Aba or in Imo State from where they run their offices in Lagos.     And when you try to talk to their receptionist, who does not know much about shares , you will be treated in a way   that  looks   as if   you do not know what you are doing. If you ask for even ordinary statement of account, they may tell you that their server is not working and they cannot print the statement.

Talking about the registrars now, the Union Registrars for instance are very good. They listen to the complaints and offer advice where needed. Though they have  their own flaws but they still manage to live up to the expectation of the shareholders.

DCN.   ABIODUN ADEWALE (Vice–Chairman, Nigerian Association of Shareholders, Ibadan zone and Chairman, Ogun State Chapter): The generality of registrars and stock brokers  in the market are trying their best. But for an investor to get the value for his investment depends on how vast his knowledge is and how much understanding he has about the market.

If they (stock brokers and registrars) discover that the shareholder is not an experienced person, one way or the other, they will   cheat him. It is even possible for them to sell your shares behind you and without your knowledge. If you are the type   that know what to do, immediately you discovered, you get them arrested and ensure that they are charged to the court for prosecution and proper punishment.

But like I said, once they know that you are very experienced in the deal, they will not try that with you.   As for me, I always monitor my shares in the various companies. I have shares in nothing less than 65 companies; I have diversified it into the different sectors of the economy, like banking, insurance, manufacturing etc.

And with me as a Chairman of a shareholders’ association, I always interact with my members to impress it on them how to go about certain matters as regarding their shares so that they will not be duped by those fraudulent stock brokers.   And for those of them that had been duped in the past, I help them to write the Stock Exchange to seek redress. And since they (the broker ) belong to a particular company, all the Exchange need to do is to invite them to give explanation on what was reported.

And before we write to them, we ensure that we have the relevant evidences and information that will prove that the stock broker has truly sold the shares without your permission. So, if shareholders   suspects   any fowl play with their shares, the number one thing to do is to let the relevant authority be   aware of the matter;   look for other enlightened investors that can also give you advice on how to go about it.