SEC Orders Registrars to Pay Defunct Afribank Shareholders

By Modupe Gbadeyanka

A directive has been made to Carnation Registrars for the payment of unclaimed dividends belonging to shareholders of the defunct Afribank Nigeria Plc. This order was given by the Securities and Exchange Commission (SEC).

Business Post reports that in 2011, fell into trouble waters, which resulted in the Central Bank of Nigeria (CBN) revoking its operating licence, with its assets and liabilities transferred to a bridge bank known as Mainstreet Bank Limited.

In July 2012, an order from a Federal High Court sitting in Lagos approved its winding up.

But before the closure of the lender, which used to be among the four biggest in Nigeria, some of its shareholders were unable to get payment for their unclaimed dividends and SEC, in its efforts to render assistance, has now directed Carnation Registrars to begin payment of this money to beneficiaries.

However, before this can be done, affected shareholders of the defunct company have been advised to contact the registrar to process their dividends for payment.

This was confirmed in a statement posted on the website of SEC dated Wednesday, September 11, 2019.

“The Securities and Exchange Commission wishes to inform shareholders of the defunct Afribank Plc that unclaimed dividends by the bank are being held in trust on their behalf.

“Investors that have unclaimed dividends are therefore advised to contact Carnation Registrars to process their dividends for payment.

“The Commission has also directed Carnation Registrars and Meristem Trustees to ensure that all genuine claims of beneficiary shareholders be addressed forthwith,” the statement read.