Your dividend cheque is NOT in the post


Your dividend cheque is NOT in the post

Published Date: 2021-01-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Your dividend cheque is NOT in the post

Companies will no longer pay dividends to shareholders using cheques as they have been discontinued by banks.

Quantum Foods has told shareholders that it won't post their dividend cheques to them any more as they are longer accepted as a form of payment by SA banks. That follows an announcement in November by the Reserve Bank, the Financial Sector Conduct Authority, Payments Association of SA and the Banking Association SA that the use of cheques as a form of payment would be discontinued.

The poultry group said shareholders who ordinarily received payment of cash distributions from the company by cheque - or who have not previously provided it with SA bank account details - needed to provide its transfer secretaries (Computershare Investor Services), their central securities depository participant or their broker, with details of their local bank account. If affected shareholders failed to make a bank account nomination, it said future distributions would be held in trust until they did.

The same requirements are likely to be implemented by other companies paying dividends.

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