PracticeConsultingInvestors fail to claim £400m in payouts

Investors fail to claim £400m in payouts

Figures released by the Banking Automated Clearing Service have revealed up to £400m worth of share dividend payouts remain unclaimed in company bank accounts.

BACS said 60 million dividend cheques are sent to shareholders every year, but many are never cashed in.

Listed companies are under an obligation to set up an account for all unclaimed dividends. Shareholders have up to 12 years to claim these payouts, after which time the company can reclaim them.

Research, conducted by the clearing service revealed the majority of shareholders would prefer to have dividends paid directly into their bank accounts.

BACS spokesman, Murray Cohen, said setting up a direct payment was a fairly easy task: ‘All the shareholder needs to do is complete the details of their bank or building society account on the form that accompanies the dividend cheque.

‘Once the form has been returned all future dividends will be paid straight into shareholder’s bank account.’

Keith Hollender from the Unclaimed Assets Register added his support to the direct payment method.

‘Any solution to tackle the growing mountain of unclaimed assets has to be welcomed. Not only does the UAR give its support to shareholders receiving dividends via the BACS service, but would also encourage insurers to look into paying matured life policies in the same way.’

Last year the UAR, which manages a database of unclaimed assets, reported that up to Pounds 15bn lay unclaimed in the vaults of UK companies and institutions. Of that Pounds 3bn are monies unclaimed on shares and dividends.

The rest is made up of dormant accounts, national savings, pension funds and life polices. More than Pounds 300m lies waiting for national lottery winners to collect their prize money.

Links

BACS online

The Unclaimed Assets Register online

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer