Tuesday, January 19, 2021

FG to borrow unclaimed dividends, dormant accounts

Categories

Share

The Federal Government plans to borrow unclaimed dividends and funds in dormant account balances of Deposit Money Banks.

It disclosed this under Part XII of the Companies and Allied Matters Act in the signed Finance Act 2020 which stated that dividends were special debts due to and recoverable by shareholders within 12 years, and actionable only when declared.

The Act states that dividends that were unclaimed after 12 years should be included in the profits that should be distributed to the other shareholders of the company.

The government plans to borrow from this unclaimed funds.