Companies House, an Executive Agency of the Department for Business and Trade (DBT) is where all limited businesses in the United Kingdom are registered. Over 2 million limited companies are registered in Great Britain, and over 300,000 new firms are established each year. This blog looks at the process of locating lost shareholders.
Lost Shareholders
An estimated £3 billion is owed to UK investors in unclaimed shares and dividends. According to Companies House, shares pass to the registered holder or the legal heir if the holder cannot be found, and often require a Medallion Guarantee for Share Transfers when ownership changes. However, if permitted by its articles, a corporation may retain any unclaimed revenues after a predetermined period, usually 12 years.
It is estimated that between 2% and 5% of a company’s deceased shareholders have passed away or moved away from the address to which the company mails its correspondence. Contacting the company’s share registrar should be the first step in locating misplaced shares if the company’s name is known. The largest registrars in the UK are Computershare, Equiniti, MUFG Corporate Markets, and Link Group.
Business History
Registrars can also help trace the company’s history, including mergers, acquisitions, and name changes over the years. If a company changed its name, new certificates might be issued. The registrar can also inform you of any unclaimed dividend payments or merger-related issues.
Sometimes shares become “unconditional” when a corporation is acquired. This means that while the company retains the majority of its shares, owners must sell their shares. If they don’t, the shareholder’s name is listed on a dissident’s record for 12 years, during which time you can make a claim.
After 12 years, unclaimed funds from takeovers are usually transferred to the Accountant General of the Senior Courts, based at the Court Funds Office. It is important to record the loss of any unclaimed dividend payments after 12 years.
The Guildhall Library in London is a specialised library that focuses on the financial sector and maintains comprehensive records of the history of all companies listed on the stock market. Should the registrar be unable to provide the information you need.
In Conclusion
Although finding lost shares may seem complex, it is usually well worth the effort, especially considering that £3 billion is currently unclaimed in the UK. The important thing is to take action before the 12-year window expires. Whether your search turns up a contemporary registrar like MUFG or Equiniti, or requires delving deeply into the Guildhall Library’s historical records.