A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED PROPERTY TRUST FUND CHARGED WITH THE

RESPONSIBILITY FOR
IDENTIFYING AND MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN BANKS, FINANCIAL INSTITUTIONS AND
PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED MATTERS,2010 (HB. 319)

COMMITTEE ON CAPITAL MARKETS

NATIONAL ASSEMBLY COMPLEX
THREE ARM ZONE
ABUJA . NIGERIA

A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED

PROPERTY TRUST FUND CHARGED WITH THE RESPONSIBILITY FOR IDENTIFYING AND
MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN
BANKS, FINANCIAL INSTITUTIONS AND PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED
MATTERS,2010 (HB. 319)

Provisions of the Bill

Commencement.

BE IT ENACTED by the National Assembly of the Federal Republic of Nigeria as follows:

Establishment of the Unclaimed Dividend and Abandoned Property Trust Fund

1.-(1) There is established the Unclaimed Dividend and Abandoned Property Trust Fund (in
this Bill referred to as "the Fund") into which shall be paid-

(a) unclaimed dividends;

(b) abandoned bank deposits; and
(c) unclaimed or abandoned-
(i) money or cheques, money order, traveler's cheque, drafts, deposits, interests,
dividends,
(ii) security deposit, refund, credit balance, unpaid wage or salary or unpaid wage or
salary or unidentified remittances,
(iii) security certificate or other evidence of ownership of an interest in a business
organization,
(iv) bond, debenture, note or other evidence of indebtedness,
(v) money deposited to redeem shares, bonds, coupons or other securities,
(vi) an amount due or payable under the term of an annuity or insurance policy, and
(vii) an amount distributable from a trust or custodial fund established under a plan
to provide education health, welfare, severance, share purchase, profit sharing,
employee savings or benefits.

2. The Fund-

(a) shall be a body corporate with perpetual succession and a common seal;
(b) may sue or be sued in its corporate name; and
(c) may hold or dispose of movable and immovable property.

2.- stablishment and composition of the Governing Board

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 A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED PROPERTY TRUST FUND CHARGED WITH THE RESPONSIBILITY FOR
IDENTIFYING AND MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN BANKS, FINANCIAL INSTITUTIONS AND
PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED MATTERS,2010 (HB. 319)

(1) There is established for the Fund a Governing Board (in this Bill referred to as "Board").

(2) The Board shall consist of-

(a) a chairman;
(b) a representative each of the-
(i) Federal Ministry of Finance,
(ii) Corporate Affairs Commission,
(iii) Securities and Exchange Commission,
(iv) Share holders Association of Nigeria,
(v) Central Bank of Nigeria,
(iv) the six geopolitical zones, and
(c) the Director-General.

(3) Members shall-

(a) hold office for a term of four years and may be eligible for re-
appointment for further term of four years only;
(b) be appointed by the President on the recommendation of the Minister;
and
(c) be paid such remuneration and allowances as obtained in the Public Service of the
Federation.

Cessation of membership.
3.- (1) A member shall cease to hold office if he-
(a) becomes of unsound mind;
(b) becomes bankrupt or makes a compromise with his creditors;
(c) is convicted of a felony or any offence involving dishonesty;
(d) commits serious misconduct in relation to his duties; or
(e) is involved in any corrupt practice.

Removal of a member of the Board

4.-(1) A member of the Board may be removed from office by the President if he is satisfied
that it is not in the interest of the Fund or the interest of the public that the member
continues in that office.

(2) Where a vacancy occurs in the membership of the Board it shall be filled by the
appointment of a successors to hold office for the remainder of the term of his predecessor
and the successors shall represent the same interest.

Functions of the Board

5. The Fund shall-
(a) maintain database of unclaimed dividends abandoned property and investments;
(b) identify all unclaimed dividends and abandoned property in banks, financial institutions,
and public companies;
(c) carry out public enlightenment on unclaimed dividends and abandoned property;
(d) pay to owners of the unclaimed dividends and abandoned property recovered from
banks, financial institutions and public companies;
(e) approve participating banks that deal with the Fund;
(f) inspect and examine books and records of banks, financial institutions and companies in
Nigeria covered by this Bill;
(g) invest the monies in the Fund in viable companies;
(i) receive all unclaimed dividends and abandoned property;

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 A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED PROPERTY TRUST FUND CHARGED WITH THE RESPONSIBILITY FOR
IDENTIFYING AND MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN BANKS, FINANCIAL INSTITUTIONS AND
PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED MATTERS,2010 (HB. 319)

(ii) carryout any other activity that is connected with the objects of this
Bill; and
(iii) maintain a website with database of all unclaimed or abandoned property.

Appointment of the Director-General and his functions.

6.-(1) There shall be for the Fund a Director- General who shall-
(a) be appointed by the President;

(b) be the Chief Executive Officer responsible for the day -to- day administration of the
Fund;
(c) be the Secretary of the Board;
(d) possess skills and 15 years cognate experience and knowledge in tax administration and
financial management; and
(e) hold office for a period of 5 years in the first instance and may be eligible for re-
appointment for a further term of 5 years only and on such terms and Conditions as to
emoluments condition, of service as may be Specified in his letter of appointment.

(2) The Director - General shall, subject to the general Control of the Board, be responsible
for-
(a) keeping records of proceedings of the Board;
(b) implementing the policies and decision, of the Board; and
(c) the direction and Control of other employees of the Fund.

(3) The Fund may_

(a) employ either directly or on transfer or secondment from any civil or public service in
the Federation such number of employees as may in the opinion of the Board. be required
to assist the Board and the Director-General in the discharge of their functions under this
Bill; and
(b) pay such remuneration (including allowances) as the Board may with the approval of the
National Salaries Income and Wages Commission determine.

Pensions Act No. 60 of 2004

7.-(1) Service in the Fund shall be approved service for the purpose of the Pension Reform
Act. 2004 and accordingly. Staff and employees of the Fund shall be entitled to pension and
benefit as prescribed under that Act.

(2) Without prejudice to the provisions of subsection (1) of this section, nothing in this Bill
shall prevent the appointment to any office on terms which prelude the grant of pensions
and benefits in respect of that office.

(3) For the purpose of the application of the Provisions of the Pension Reform Act any
Power exercised by the Minister or other authority of the Federal Government, is vested in,
and shall be exercised by the Fund.

Financial provisions
8.-(1) The Fund shall establish and maintain an account to be known as investment
account into which shall be Paid in the following
(a) all Outstanding unclaimed dividends held by public companies or dissolved public
companies and their agents declared within 30 years preceding the commencement of this
Bill; and
(b) all abandoned and dormant bank deposits and investments within 30 years proceedings
the commencement of this Bill.

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 A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED PROPERTY TRUST FUND CHARGED WITH THE RESPONSIBILITY FOR
IDENTIFYING AND MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN BANKS, FINANCIAL INSTITUTIONS AND
PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED MATTERS,2010 (HB. 319)

(2) The Fund shall establish and maintain a fund which shall consist-
(a) such sum as may, from time to time, be provided by the Federal Government for the
running of the expenses of the Fund;
(b) interest and returns on investment of recovered dividends and abandoned deposits;
(c) such fees as may be determined by the Fund; and
(d) such other sums as may accrue to the Fund either in the execution of its functions under
this Bill or in respect of any property vested in the Fund.

Application of funds
9. The Fund may, from time to time, apply the proceeds of the monies Application of funds
established in section 8 (2) of this Bill to-
(a) meet the cost of administration of the Fund;
(b) reimburse members of the Board or any committee set up by the Fund the expenses
authorized or approved by the Fund;
(c) the payment of salaries, fees or other remunerations, allowances and pension payable to
members and employees of the Fund;
(d) the maintenance of any property acquired by or vested in the Fund;
(e) all or any of the functions of the Funds under this Bill or any matter connected with
those functions.

Power to accept gifts

10. The Fund may accept gifts, grants or donations of land or other property from any
person or organization upon such terms and conditions as may be specified by the person or
organization making the gift or donation provided that such terms and condition are not
inconsistent with the functions and objectives of the Fund.

Annual estimate account and audit

11.-(1) The Fund shall not later than 30th September in each year, submit to the President
an estimate of its expenditure and income (including estimates of expanded payments into
the Fund and audit. estimates of expended payments into the Fund) during the next
succeeding year.

(2) The Fund shall keep proper account in form which conforms to accepted accounting
standards and proper records related to it.

(3) The account of the Fund shall be audited at the end of each calendar year by auditors
appointed from the list and in accordance with the guidelines supplied by the Auditor-
General of the Federation and the fees of auditors and expenses shall be paid from the
funds of the Fund.

Annual Reports
12. The Fund shall, not later than six months after the end of each preceding year, submit
to the Minister annual reports and shall include in the report the audited account of the
Fund and the comments thereon.

Power to borrow
13. The Fund may, from time to time, borrow otherwise, such sums as it may require for
the performance of its functions.

Who must report

14. The holder of unclaimed dividends and abandoned property-
(a) shall report to the Fund the existence of such property within six calendar months; and

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 A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED PROPERTY TRUST FUND CHARGED WITH THE RESPONSIBILITY FOR
IDENTIFYING AND MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN BANKS, FINANCIAL INSTITUTIONS AND
PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED MATTERS,2010 (HB. 319)

(b) may apply to voluntarily declare a property as unclaimed or abandoned property before
the period specified under this Bill.

Limitations of suit Cap. P41 LFN, 2004

15. The provisions of the Public Officers Protection Act shall apply in relation to any suit
instituted against any officer or employee of the Fund.
(2) A suit shall not be commenced against a member of the Board, the Director-General or
employee of the Fund before the expiration of a period of one month after written notice of
intention to commence the suit shall have been served upon the Fund by the intending
plaintiff or his agent.
(3) The notice referred to in subsection (2) of this section shall state the -
(a) course of action;
(b) particulars of the claim;
(c) name and place of abode of the intending plaintiff; and
(d) relief which he claims.

Service of documents
16. A notice, summons or other document required or authorized to be served upon the
Fund under the provisions of this Bill or any other law or enactment may be served by
delivering it to the Director-General at the principal office of the Fund.

Restriction on the execution against property of the Fund

17-(1) An execution or attachment of process shall not be issued against the Fund in any
action or suit without the consent of the Attorney-General of the Federation.

(2) A judgment sum awarded against the Fund by a court of competent jurisdiction shall,
subject to any direction given, be paid from the proceeds of the Fund.

Indemnity of officers
18. Member of the Board, the Director- General, any officer or employee of the Fund
shall be indemnified out of the assets of the Fund against any proceeding, whether civil or
criminal, in which judgment is given in his favour, or in which he is acquitted, if any such
proceeding is brought against him in his capacity as member of the Board, Director -
General, officer or employee of the Fund.

Prescribed dates for payment and Penalty for non-payment

19.-(1) The Board shall, from time to time by notice served by registered post on the
particular company or bank concerned, specify the date on which any unclaimed dividend
or abandoned bank deposit due from that company or bank shall be paid to the Fund.
(2) If any sum is not paid within 21 days of the specified date, a sum equal to ten percent
of the amount unpaid shall be added for each month or part of a month after the date on
which would have been made.

Offences and Penalties.

20.-(1) A person who fails to comply with this Bill commits an offence and is liable on
conviction to a fine not exceeding N500,000.
(2) A person who-
(a) knowingly or recklessly furnishes, in pursuance of any requirement made under this Bill,
any return or information which is false in any material particular; or

(b) willfully makes a false entry in any record required to be produced under that section
with intent to deceive or makes use of any such entry which he knows to be false commits

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 A BILL FOR AN ACT TO ESTABLISH THE UNCLAIMED DIVIDENDS AND ABANDONED PROPERTY TRUST FUND CHARGED WITH THE RESPONSIBILITY FOR
IDENTIFYING AND MAINTAINING DATABASE OF UNCLAIMED DIVIDENDS, ABANDONED PROPERTY AND INVESTMENT IN BANKS, FINANCIAL INSTITUTIONS AND
PUBLIC COMPANIES IN NIGERIA; AND FOR RELATED MATTERS,2010 (HB. 319)

an offence and is liable on conviction a fine not exceeding N500,000.00 or to imprisonment

for a term not exceeding five years or both.

(3) Where an offence under this Bill is committed by a body corporate and it is proved to
have been committed with the consent or connivance of, or to be attributed to any neglect
on the pan of any director, manager, secretary or other similar officer of the body corporate
(or any person purporting to act any such capacity) he, as well as the body corporate, shall
be deemed to be guilty of the offence and may be proceeded against and punished
accordingly.

Regulations
The Board may, with the approval of the Minister, make regulations to give effect to the
provisions of this Bill.

Interpretation
22. In this Bill -
"Member" means a member of the Board and includes the Chairman; "Minister" means the
Minister responsible for finance;

"Property" includes-
(a) residual property from businesses (corporation, societies and cooperatives) stock from
the corporate registry;
(b) property of persons who died with no known heirs or address; or
(c) property remaining unclaimed after 5 years and these assets become the property of the
Fund for onward remittance to the beneficiary any day he emerges;

"Public companies" means public companies within the meaning of the Companies and Allied
Matters Act; and

Citation
23. This Bill may be cited as the Unclaimed Dividends and Abandoned Property Trust Fund
(Establishment Etc.) Bill, 2009.

EXPLANATORY MEMORANDUM
This Bill seeks to establish the Unclaimed Dividends anc. Abandoned Property Trust Fund to
take over and administer unclaimed and abandoned property lying idle in companies

The Public Hearing is for 24-25 November 2010.

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