Escheated Shares
Escheated Shareholdings
If you have a problem with escheated shares, then don’t hesitate to contact us. We may be able to assist. There are many variables involved when shares have been escheated. However, we have had many successful applications. Call us on 0203 985 9551.
What is Escheatment?
Escheatment is where a shareholding is 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 returned to the state it can be extremely difficult to recover. Regardless, recovery of escheated assets is not impossible and 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 must push them through the escheatment process. The states have strict criteria that stipulate when this process begins.
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 or two cheques go uncashed, you run the risk of the shares being escheated.
Watch our Video Explanation by clicking here.
Recovering Escheated Shares
If you have escheated shares, or you are aware of a family member whose shares have been escheated then contact us as we may be able to assist in reuniting the sales proceeds with the rightful parties. Remember of course nearly always the shares themselves will now no longer exist. The State where the shares were incorporated would have only received the money the shares were worth when the transfer agent sold them through their escheatment programme. In order to recover the money we will need to go through an unclaimed asset procedure
0203 985 9551
“Mr Steve Pyott was very patience and supportive in guiding me through the entire Medallion Guarantee Stamp Request. Thank You very Much.”
0203 985 9551