Securities and Exchange Commission (SEC) has vowed the enforcement of electronically
transmitted annual reports to shareholders.
The idea is to ensure listed companies receive such reports few weeks before their annual general meeting.
SEC’s Director General, Mounir Gwarzo, disclosed this at the agency’s second quarterly Capital Market Committee (CMC) meeting press briefing in Lagos. He observed that 98 percent of shareholders don’t get their annual report on time except for institutional investors.
He said the annual report will not be completely done electronically but company secretaries will deposit some of the hard copies with the shareholders’ associations for those who are unable to access the electronic annual report.
Gwarzo noted that the pilot stage will take off this year and will be reviewed with time, while adding that the aim is to ensure that all investors get the report on time and study it thoroughly and ask relevant questions and contribution to the meeting.
Speaking on e-dividend mandate, the Director General said as at the end of July 2017, only 432,000 unique individuals had BVN out of the 2.1million that have mandated their accounts. The deadline for e dividend mandate has been extended to the 31st of December 2017.
He said: “It’s mandatory for every investor to key in into the direct cash settlement initiative and the committee has streamlined the process and now we have one form that will be completed by the investors.”
To make the system easier for investors, the capital market committee has merged the direct cash settlement and the e- dividend together in one single form which is now called Electronic Capital Registration System Form (ECRF).