LOST SECURITY HOLDERS
Disposal
of Securities When the Whereabouts of Holder is Unknown
It is considered to be good practice for the registry
or company to make reasonable efforts to locate the correct address
of a securityholder when mail is returned unclaimed.
Recommended procedures are as follows :
- Upon the initial return
of an undeliverable item, immediately mail the item to the same address
with the envelope marked with a " 2 " to indicate it is
the second mailing (Many returned mail items are cleared in this way
).
- If the item is returned
(as identified from the No. 2 on the envelope) then the relevant returned
mail indicator or lost contact flag, available on most registry computer
systems, should be recorded against the holding.
- It is essential that the
last known address of the securityholder be retained in the registry
records at all times. It is not good practice to amend the address
to C/- the company.
- If access is available,
endeavour to trace the securityholder’s new address from the
telephone directory. Access to Electronic White Pages would assist
this task.
- Forward a letter addressed
to the householder at the last known address enquiring the whereabouts
of the securityholder.
- Contact the bank which
negotiated the last dividend cheque or if dividends are credited direct
to a bank account, contact that bank.
- If a recent purchase,
contact the broker who initiated the transaction.
- Search the electoral rolls.
Where the company believes
the whereabouts of the holder is unknown the company is permitted to
refrain from forwarding the Annual Report. For security reasons it would
also be prudent to refrain from forwarding dividend cheques or holding
statements.
The Corporations Act/ASX listing rules require that a Notice of Meeting
and Proxy Form must be despatched to all ordinary securityholders. An ASIC Class Order
also requires an issuer to send a notice to an "uncontactable member"
at least once each year for a period of not less than 6 years stating
that the despatch of the Annual Report has been suspended.
It is recommended that for other types of securities
which do not require a notice of meeting a letter be forwarded to the
last known address at least once per year.
Disposal
of Securities When the Whereabouts of Holder is Unknown
The Corporations Act provides that where a securityholder
has been "lost" for a period of at least six years and the
registry or company has for that period with reasonable diligence sought
to communicate with the securityholder and has been unable to do so,
it may complete a transfer of the securities on behalf of the securityholder
in favour of the Australian Securities and Investment Commission. For
specific requirements refer to Section 1343 of the Corporations Act.
