If you have a problem with escheated shares then don’t hesitate to make contact with us. We may be able to assist. There are many variables involved when shares have been escheated but we have had lots of successful applications. Call us on 020 8150 2010
What is Escheatment
Escheatment is where a shareholding is either sold by the Transfer Agent and any money that is obtained is sent back to the state where the shareholding from that company is incorporated or the holding itself is sent back. Delaware is where most US companies are incorporated. Once the money or shares are handed back to the state it can be extremely difficult to recover, simply because the States need the money these days. Recovery of escheated assets is not impossible we are happy to assist.
Why are shares Escheated?
Transfer Agents, who manage stock holdings for various companies across the USA and Canada, have a duty to manage the shareholdings correctly. If a shareholdings is left ‘dormant’ for a certain period of time then the transfer agent have no choice but to push them through the escheatment process. The states have strict criteria that they stipulate to the transfer agent telling them when shares should be escheated.
What causes Escheatment
Shareholdings are escheated by the transfer agents most typically because of two reasons, the first is when multiple letters are sent to the registered holders address and these are returned undelivered. Alternatively they are escheated because the dividend cheques that are sent out go uncashed. Sometimes these dividends cheques can be of low value, if more than one two cheques go uncashed you run the risk of the shares being escheated.