The Independent Shareholders Association of Nigeria(ISAN) have advised all quoted Companies to Obey section 379 ss 2 of the companies and Allied Matters Act LFN 2004(CAMA) and pay dividend to their shareholders in order to ameliorate the economic impacts of Coronavirus on the shareholders as well as the quoted companies .
According to a release from ISAN signed by its National Co-ordinator,Prince Anthony O.Omojola and Co-ordinator Emeritus,Sir Sunny Nwosu the COVID-19 pandemic has forced many quoted companies to waste millions postponing their annual general meetings(AGMs)which will ultimately impact negatively on the companies and shareholders financially ,adding that the best thing is to convert their planned dividends into interim dividends by the decision of the board in the overall interest of the over stretched economy.
They posited that the move will cohere with the directives of the government banning gatherings of more than twenty persons as well as save millions of Naira for companies management not adding man hours that would have been lost.
As the ISAN release stated in view of the above and taking cognizance of the relevant section of” CAMA Act LFN 2004,the intended and proposed dividends for the year under review should be convertible to interim dividends and made payable by the Board of Directors of the affected Companies and Banks accordingly.
”Relevant controlling and Regulatory Authorities should see this measure as a palliative or stimulus to cushion the effect of COVID-19 on the shareholders to meet their urgent individual needs and aspirations.
”We urge such organisations to urgently liaise and inform their sectoral and ultimate regulating organs to have seamless collaborations without incurring any liabilities.”