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Question
My mother bought shares almost a decade ago in some companies. She has never received dividends and doesn’t know where the certificates are. Are those shares still valuable? If yes, how can she claim dividends and receive interest for past years?
Answer
Let’s start by establishing vital things you need to know as a shareholder:
- A share is simply proof of ownership of a part of the company. The more shares you have, the more of the company you own, making you a shareholder.
- This proof of ownership is represented by a share certificate, which today is recorded electronically.
- Shares generally retain value and typically appreciate over the years. Companies often declare dividends when profit is made. However, the absence of dividends doesn’t negate the worth of the shares.
Now that we have established these facts, while the missing certificates pose a challenge, all hope is not lost. Your mother should contact the registrars of the respective companies. They can guide her on the steps to take for certificate recovery and possibly through the process of claiming these dividends, interests included.
Here is a step-by-step guide:
- Make a list of the companies in which she holds shares and has unclaimed dividends.
- Locate the registrars of the companies you already listed. You can find their contact details on the companies’ websites.
- When contacting the registrars, be prepared to provide the necessary information.
- The registrars may provide specific forms for the claim process. Complete these forms accurately and submit them along with the required documentation.
- The registrars will verify your information and ownership of the shares. This process may take some time, so be patient.
- Once the claim is verified and approved, you will receive confirmation from the registrars. This will include details on the amount of dividends to be paid and the mode of payment.
- Dividends can be paid through various methods, including direct deposit into your bank account or the issuance of a dividend warrant, a document similar to a check.
- Stay in touch with the registrars to monitor the progress of your claim. If there are any issues or delays, they can provide updates and guidance.
- You should also visit www.sec.gov.ng/non-mandated/ and input the name of the shareholder to check for unclaimed dividends.
By following these steps, you can navigate the entire process and ensure that you and your family receive the dividends that are rightfully yours.
Question:
What’s the difference between a trust fund, savings, and investing for a child’s education?
Answer
Savings refers to keeping money to spend in the future—in this case, for your children’s fees.
Investing speaks to intentionally buying various financial instruments, such as stocks, bonds, or real estate, with the expectation that they will grow over time.
If you are looking to build wealth, then investing should be your goal as it is a great opportunity to grow your money if done right.
I am sure you have once heard the term ‘trust fund for your children.’ It simply refers to children who are beneficiaries of a trust fund scheme. A trust fund is like a special savings or investment account set up to take care of specific things for someone, usually for their future or certain needs. Trust me, it is a great way to secure your children’s education.
It’s managed by a trustee who follows the rules laid out by the person who created the trust (in this case, the parent or someone wanting to help out). It ensures money is used the way it’s meant to be, even if the person who created it isn’t around anymore.
Note that a trust fund can involve both savings and investment but typically, it is invested in various financial instruments so it can yield significant returns. If you are risk averse, then you should take the savings option.
If you are new to investing and would love to be guided through, you can subscribe to MoneyAfrica’s premium package for a one-on-one session for more clarity.
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