Office of Registrar of Companies raises concerns over unclaimed dividends
The Office of the Registrar of Companies in Ghana has raised concerns about the issue of unclaimed dividends by shareholders. In a recent statement, the Registrar expressed worry about the number of companies that have unclaimed dividends sitting in their accounts, which are sometimes borrowed by the companies. To discourage such practices, the Registrar is taking steps to ensure that companies with unclaimed dividends transfer the funds to its interest-bearing accounts.
The Registrar of Companies, Jemima Oware, speaking at a programme organised by the UK Ghana Chamber of Commerce, revealed that her outfit has opened an interest-bearing account in both cedis and dollars to manage these dividends. The move is aimed at safeguarding the interests of shareholders, ensuring transparency, and discouraging companies from borrowing from the unclaimed dividends.
The Registrar of Companies further revealed that under section 73 and 74 of the act, the office will manage the unclaimed dividends for seven years. After this period, any remaining funds will be transferred to the government, with 50% of the funds going towards investor education, research, entrepreneurial development, and advanced company law.
According to the Registrar of Companies, the other 50% of the funds will be managed by the office, and will be used for various developmental purposes, including investor education, research, and entrepreneurial development. The Registrar further explained that the office will publish a bulletin with the names of shareholders who have unclaimed dividends due to them. If after seven years, they do not claim their dividends, 50% of the funds will be transferred to the government, as mandated by law.
The move by the Office of the Registrar of Companies is expected to boost investor confidence, promote transparency, and ensure that shareholders receive their due dividends. The interest-bearing accounts set up by the office will enable the funds to generate income for the benefit of shareholders and the country as a whole.
The issue of unclaimed dividends is not unique to Ghana, as it is a common phenomenon in many countries around the world. However, the move by the Office of the Registrar of Companies in Ghana is a positive step towards addressing this issue, and it is expected to serve as a model for other countries to follow.
The move by the Office of the Registrar of Companies in Ghana to manage unclaimed dividends is a positive development for the country’s financial sector. The interest-bearing accounts set up by the office will enable the funds to generate income for the benefit of shareholders and the country as a whole. The move is expected to promote transparency, boost investor confidence, and ensure that shareholders receive their due dividends.
