ORC prepares to implement legal provisions on shareholders' unclaimed dividends
The phenomenon of unclaimed dividends is one of the new introductions in the Companies Act 2019 (Act 992).
The Office of the Registrar of Companies says it intends to implement the provisions on shareholders' unclaimed dividends set out in sections 73 and 74 of the Companies Act, 2019 (Act 992).
In a press release on April 6, 2023, the ORC directed that companies that have in their possession unclaimed dividends since the commencement of Act 992, should in compliance with sections 74 (1 and 2), transfer the total amount of dividends to the Registrar.
“The unclaimed dividends should be transferred into the Unclaimed Dividends account of the Office of the Registrar of Companies held with the Bank of Ghana (ORC Unclaimed Dividends Accounts),” the statement noted.
Companies, therefore, have until the end of September 2023 to comply with the directive, the statement further noted.
The treatment of unclaimed dividends under Act 992
The phenomenon of unclaimed dividends is one of the new introductions in the Companies Act 2019 (Act 992).
Under section 73 (1) of the Act, if dividends remain unclaimed for a period of three months, a company is required to open an interest-bearing unclaimed dividend account, and credit to that account the total amount of the unclaimed dividend of its shareholders.
On the opening of the said account, if the dividend is still unclaimed within a further period of 12 months, the company is required under section 73(2), to pay to the Registrar the total amount of the unclaimed dividend plus interest accrued on that account.
The Act also provides that the Registrar shall then, with the approval of the Board open an interest-bearing bank account for the safe keeping of monies paid by the companies.
It further places a duty on the Registrar to publish annually in the Companies Bulletin and in a newspaper of national circulation the details of all such shareholders whose dividends have been transferred to the ORC's Unclaimed Dividends account.
Section 73(6) additionally provides that at any time the company is making payment to the Registrar, the company must notify the respective shareholders or their estate of the payment made in respect of the dividend.
The shareholder or the estate, upon show of requisite evidence, will be then entitled to make a claim for the dividend in issue.
