Shareholders seek removal of Finance Act 2021 Part V

By Peter Egwuatu

Against the backdrop of transferring unclaimed dividend into the Federation Account as proposed in the Finance Act 2021, the shareholders under the aegis of Independent Shareholder Association of Nigeria, ISAN, have pleaded to the government that Part V of the Act which made the stipulation be expunged.

They argued that the idea of converting private wealth to government revenue negates the country’s constitutional provisions.

The shareholders after attending the public hearing of the Senate Committee on Finance, Trade & Investment and Public Procurement on the Finance Bill held last week, stated that the proposed bill will not serve the interest of investors now and in the foreseeable future adding that it could cause unwarranted hardship and misappropriation of their investments.

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ISAN stated: “For this and other numerous reasons, we plead that the Finance Bill 2021 (Part V) be expunged.    ISAN as a proactive economic and investment pressure group, categorically state our position on unclaimed dividends as follows:    This idea of converting such private wealth to Federal Government revenue negates the relevant provisions of the rights to own property/asset as guaranteed by the 1999 Constitution, as amended.”

ISAN added: “We are an Association of over 10,000 members spread all over Nigeria. Our avowed interest is the protection of the cherished values and welfare of shareholders in general – members and non-members alike, nationwide.”

The statement signed by Prince (Dr) Anthony O. Omojola, National Coordinator and Sir Sunday N. Nwosu, National Coordinator (Emeritus) of ISAN respectively explained:    “Dividends are private wealth of investors, either individuals or corporate entities. The idea of converting such private wealth to Federal Government revenue negates the relevant provisions of the rights to own property/asset as guaranteed by the 1999 Constitution, as amended. Our opinion is that S39 to the extent of its inconsistency with S44 of the 1999 Constitution (as amended) is null and void. The law expressly states that there shall be no forceful takeover of any private moveable or immovable property of any Nigerian without due and appropriate compensation and/or valid court order.”

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