By Ola Emmanuel
Recent email, sms, visitations and calls demand I peep a bit into above subject today before they are handled separately. From my interactions with these people, they have all been complaining of not getting required attention from company registrars. Those who have been writing letters hardly get any response. Also, cases of stockbrokers acting ultra-vires have been re-occurring. So many public offer subscribers do not know whether their subscriptions are successful or not; and have been asking for share certificates. So also is the issue of delivery addresses that have contributed greatly to the growing lists of Unclaimed Dividends.
Awareness, in this respect, has been shallow with millions of investors not knowing what to do to follow up their investments. Complaints against a popular stockbroking firm with head office in Lagos are being laid from Abuja and Port Harcourt over issues bothering on integrity and ultra-vires transactions. I have since sent email to the MD of the stockbroking firm to educate me on the situations. So, also is an issue of people not getting positive responses from company registrars. I will mention two instances here which I expect the concerned to respond to by sending rejoinders to my email address. One: outside the bankers’ confirmation of signature, in what ways can a shareholder easily effect a change of signature that is no longer regular so that he can be receiving his dividends? There is a case of a signature (ostensibly signed some seventeen years ago) with an alleged response from the company registrar concerned that they can only recognise bankers’ confirmation. Also, why is it always difficult for company registrars to respond to investors’ letters; knowing fully well that some shareholders live far from their offices? I have not been asking for rejoinders but I am expecting in respect of above.
Don’t Agree With Stockbroker’s Ultra-vires Actions:
A stockbroker is an agent of an investor who should act on the instruction of the investor to buy or sell on behalf of the investor on the floor of the stock exchange. A stockbroker must build his client’s trust and confidence; and where a client suspects that a particular stockbroker is engaging in unwholesome acts, and it can be proved, a shareholder owe it a duty to report such a stockbroker or stockbroking firm for necessary sanction. Where stockbrokers go outside the instructions of a client (an investor), such an investor is not bound by the acts of such a stockbroker. A transaction carried out by a stockbroker without the instruction of the investor can be rejected, many investors don’t know this.
An investor must cultivate the habit of relating with the market’s players beside the stockbroker. An investor should always request for his/her stockholding statement from time to time. Where a stockbroker is not forthcoming with this, such an investor can approach the CSCS directly and obtain his/her statement of stockholding upon payment of N100. What is required is a written letter (with shareholder’s name and account number specified in the letter) and evidence of the stock ownership.
The Duty of Company Registrars:
A registrar is the keeper of records in respect of stocks and shares. Company registrars are appointed by quoted companies to act as their agents. The registrars maintain the company register where the names and shares held by investors are kept. So they maintain this record. They prepare share certificates and send them to shareholders. Also, they pay out approved dividends to shareholders. Whenever an investor has a problem with a share certificate or dividends, the company registrar is in the best position to attend to this. Therefore, every investor must have functional telephone numbers of the registrar(s) to companies he has invested his money.
Especially when an investor put money in public offers (or in other share investment) he must watch keenly the activities emanating from the company registrars. In this regard, don’t fail to walk into or call the registrars’ offices to clear issues as it concerns you if you sense any delay.
Enjoy my Pen, and remember, ‘It is your life’.
OLA EMMANUEL