Shareholders have decried the planned move by the Securities and Exchange Commission to suspend the issuance of dividends warrants if they do not subscribe to e-dividend payout.
The shareholders, who spoke to our correspondent in separate interviews on Thursday, said that it was not right for SEC to give shareholders a deadline.
They added that a lot of things that should have been put in place to ensure the protection of investors had not been done, adding that such should have been in place before SEC's decision to cancel dividend warrants.
SEC, in a circular published in some national dailies last week, directed shareholders and investors of public companies to forward their bank account details to their registrars and stockbrokers by June 3, 2013.
The circular read in part, "SEC has observed with dismay the unprecedented increase in the size of unclaimed dividends in the capital market. The Commission hereby requests all investors/shareholders of public companies to forward their bank account details to their respective registrars/stockbrokers on or before June 3, 2013 to facilitate the electronic payment of future dividends.
"Failure to do so may amount to the automatic forfeiture of future dividends as dividends warrants would cease to exist from June 3, 2013 except in the event that a shareholder specifically requests in writing for the continued issuance of dividend warrants.
"The Commission is confident that the introduction of the E-dividend payment system would reduce to the barest minimum the accumulation of unclaimed dividends in the financial system and ensure that shareholders receive their dividends promptly, thereby improving confidence in the capital market."
But the National Coordinator, Independent Shareholders Association of Nigeria, Mr. Sunny Nwosu, said the move by SEC, rather than correct the situation, might cause more panic in the market.
He added that there should have been various collaborations with major stakeholders before such a decision was reached.
Nwosu said, "We do not believe that the action of SEC in this regard is in the right direction because it seems the commission is not taking the plight of investors into consideration before coming up with such a decision.
"We, therefore, appeal to companies in their own interest not to encourage such a move, because SEC does not have the right to cancel the warrants of investors. I think that the National Assembly should look into the issue critically, else, these companies will be facing a lot of litigation in the months to come."
Another shareholder, Mr. Adebayo Adeleke, said the volume of the decision by SEC may not reduce unclaimed dividends, adding that things should be done in the right way.
