All UK limited companies are registered at Companies House, an Executive Agency of the Business, Enterprise and Regulatory Reform Department (BERR). In Great Britain, there are more than 2 million registered limited companies, and more than 300,000 new businesses are formed annually. This blog looks at the process of tracing lost shareholders.
Lost Shareholders in the UK
According to estimates, unclaimed shares and dividends owe UK investors about £3 billion. Companies house states if a holder cannot be located, shares go to the registered holder or the lawful heir. However, a corporation may keep any profits that go unclaimed after a specific amount of time, often 12 years, if permitted by its articles.
On average, it is thought that 2% to 5% of a firm’s lost shareholders have either moved away from the address where the corporation delivers letters or have passed away. If the name of the firm is known, the first step in finding misplaced shares should be to get in touch with the company’s share registrar. In the UK, Capita, Lloyds TSB/Equiniti, and ComputerShare are the three largest registrars.
Business History
The history of the business, including any mergers, acquisitions, or name changes that have happened over the years, can also be traced with the help of registrars. New certificates could be produced if the business changed its name. If there are any unclaimed dividend payments or merger considerations, the registrar can also let you know.
When a corporation is acquired, shares occasionally become ‘unconditional’. This indicates that shareholders must sell their shares while the firm keeps the majority. In the event that they fail to do so, the shareholder’s name appears on a dissidents’ record for a period of 12 years, during which time you may file a claim.
The funds are transferred to the Accountant General of the Supreme Court when 12 years have passed since the takeover. Claims made after the 12-year window must be filed here. The loss of any unclaimed dividend payments after 12 years should be noted.
If the registrar is unable to offer the information you require, the Guildhall Library in London is a specialised library focusing on the financial area and maintains thorough data on the history of all firms listed on the stock market.
Contact Medallion Guarantee on 0203 985 9551.