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Shareholders seek conversion of 2019 final dividends to interim

Shareholders seek conversion of 2019 final dividends to interim

By Nkiruka Nnorom

Shareholder
Stock Market

SHAREHOLDERS in the Nigerian capital market have urged companies to convert their final dividends to interim dividends following postponement of the Annual General Meetings, AGMs, by the companies on the back of the Coronavirus, COVID-19, pandemic ravaging the world.

Recall that many companies that previously announced dates for their AGMs have postponed them as a measure to curtail the spread of the virus. Many of the companies have also declared dividend for the year ended December 31, 2019.

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However, shareholders under the aegis of Independent Shareholders Association of Nigeria, ISAN, have said the dividend should now be paid despite the postponement of the various meetings as a cushion of the economic effect of COVID-19 on the investors.

The statement signed by the association’s National Coordinator, Prince Anthony Omojola, and the National Coordinator Emeritus, Sir Sunny Nwosu, reads: “As a matter of urgency and consequent upon the emergence of COVID-19, we are aware that many companies and banks have either postponed, cancelled or re-adjusted the dates and timing of their annual general meetings and other important meetings that were earlier scheduled to take place at designated time and venue.

“In view of the above and taking into cognisance of Section 379 sub-section 2 of the Companies and allied Matter Act, CAMA, LFN 2004, the intended and proposed dividends for the year under review should be convertible to interim dividends and be made payable by the orders of the Board of Directors of the affected companies and banks accordingly.”

Vanguard

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