The Securities and Commodities Authority confirmed that it is about to establish a special system for dealing with the profits of public joint-stock companies listed in the financial markets not received by shareholders during the period before 2015, after obtaining approval from the Council of Ministers in this regard with giving the companies a period of 6 months ending in January 2021 to advertise and distribute these profits before transferring them to the Authority’s account.
Preservation of rights
Dr. Obaid Al Zaabi, Chief Executive Officer of the Securities and Commodities Authority, said that this procedure was aimed at preserving the rights of shareholders, including their declared and not received profits during the period before 2015, stressing that these funds are public funds in the event that they are not delivered to the shareholders and must be transferred immediately to the trust account. The banker allocated by the Authority for this purpose after the expiration of the specified period, where the Authority will develop an accounting system and a guide of procedures for disbursing those profits to their beneficiaries.
Al-Zaabi added, in a statement to the Emirates News Agency (WAM), that the Authority, as of 2016, requested the brokerage firms operating in the financial markets to update their clients ‘database as well as the financial markets and issued a circular for listed companies to transfer profits distributed to shareholders to clear the market to be transferred to shareholders’ bank accounts. .
He explained that these measures contributed to the final outcome in ending the phenomenon of the existence of profits not received for shareholders, stressing that after next January the Authority will be able to know the actual balance of profits not received by shareholders in public joint-stock companies for the period before 2015.
Announcement of names
Public shareholding companies listed in the financial markets began by announcing the names of investors who did not receive their profits during the pre-2015 period and the need to review them, along with bringing the necessary documents to receive these profits, in implementation of the directives issued in this regard by the Securities and Commodities Authority. The companies confirmed in their advertisements that as of February, all profits that were not received by their beneficiaries will be transferred to the Securities and Commodities Authority, which will be responsible for disbursing them when demanding them.
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