In a time where layoffs and pay cuts are the norm due to declining commercial activity, finding extra cash can be the world of difference for many people.

However, that extra cash might not be in your back pocket or in the sofa, but in assets purchased years ago which have fallen into obscurity. These assets might be convertible to cash tomorrow or may be an asset which can be used as collateral with a financial institution. This article (part one) explores two assets you may claim during these unforeseen times.

BANK ACCOUNTS

Under the Banking Services Act, any money that has remained unclaimed in the possession or under the control of a bank for period of fifteen or more years can be recovered by the Government as revenues and be kept as a record of the accountant general. This recovery involves publishing a gazette in a daily newspaper at least twice or more within one year the particulars of the account such as the name, last transaction date, account number and balance in the account.

For the account holder to not lose the money in the accounts, the individual/company would need to contact the relevant commercial bank and possibly reactivate the account.

If the person is deceased and there is no will, consulting an attorney at law on the Intestate’s Estate and Property Charges Act would be the best way to determine the process of claiming the bank account.

The services of the attorney would also extend in the event where the person is disabled, incarcerated, of unsound mind or suffering from Alzheimer’s disease.

If a person has migrated, then re-establishing contact with the bank and determining the next steps would be critical in securing the funds in the bank account. Even where an account hasn’t passed the 15-year mark, bank accounts opened as children can still be accessed by the owner years later. Joint holders on an account where someone is deceased would be able to activate the account once they can prove their identity.

The Ministry of Finance published an 80-page document in March on their website with the details of every account which hasn’t been used in 15 years.

These unclaimed bank balances were valued at approximately $50 billion and list all accounts (local and foreign currency) going as far back as four decades. Although some accounts would have been reduced due to maintenance and dormancy fees, banks such as Sagicor Bank didn’t charge dormancy fees on dormant accounts over the years.

STOCKS

Before 1998, the purchase and sale of stocks on the Jamaica Stock Exchange (JSE) involved the printing of a physical certificate with the details of the owner(s) and number of shares.

This process came to an end with the establishment of the Jamaica Central Securities Depository (JCSD) which used a book entry system that processed the movement of stocks in an electronic format. The remaining paper certificates were converted to an electronic format through the creation of JCSD accounts with brokerage firms to hold the shares.

However, not all shareholders of listed companies at the time converted their stock units into an electronic format for various reasons such as the certificate being missing or the person migrating to another country. As a result, they don’t have the ability to immediately sell the shares in the company if it is still listed. These shares which may have been bought for a couple hundred dollars could be worth a couple thousands or million dollars.

In an article published in this paper from February titled ‘Need cash but experiencing frustrations selling shares on the JSE’, NE had purchased 9,000 Jamaica Broilers Group (JBG) shares nearly 25 – 30 years ago.

Based on available JSE data up to 1995, NE could have purchased those shares as cheap as $1.70 – $7. That would have been an initial investment between $15,300 and $63,000. Based on the date of the article, JBG’s share price closed at $36.24 which would have valued those shares at $326,160. This would have represented a 400 – 2000 per cent increase in value from then until that point in time.

The part not mentioned in that same article was the fact that any dividends paid out by JBG which were not claimed back over that time frame can still be claimed by NE.

Based on JSE data going back to 1995, NE would have been entitled to $3.955 per share ($36K) from then until now or $2.82 ($25K) per share if JBG utilised the provision in their articles to claim on unclaimed dividends going back to 2008.

JBG also had bonus shares and additions in the early 2000s as well. Thus, even though NE wanted to sell his shares to gain access to cash, he still has the option to claim back on those older dividends since he was a shareholder of the company.

NE could have used the remaining unit after any sale as collateral for a possible loan with any financial institution.

Stock splits for some of these older companies would have resulted in a possible increase in value over the years.

A person who owned 10,000 units of Carreras would now own 100,000 units thanks to the 10:1 split in 2017.

If you discover any of these old share certificates, it would be best to check the JSE’s listed companies section to see if the firm is still listed.

If the firm is listed, check to see which firm is the registrar of the company. The JCSD is the main registrar for companies on the JSE, but PWC Corporate Services, KPMG Regulatory Compliance Services and Sagicor Bank act as the registrar for some companies as well. The next step would be to deposit it with that company’s registrar and open a brokerage account with any of the 13 brokerage firms in Jamaica. A TRN, Government-issued ID, proof of address, two character references and proof of income would be needed to open this account. The JCSD would process the final stages of dematerialising your certificate and crediting your account. In relation to dividends which weren’t claimed or cheques that went stale, the registrar of the listed company would process your query and pay those dividends out once it can be established that the dividend wasn’t processed with a financial institution. Contacting a registrar where the share certificate isn’t available can also be considered to see if the owner is on the company’s records. The JCSD’s depository e-mail is jcsdds@jamstockex.com while the registrar arm is jcsdrs@jamstockex.com. 

David Rose is a Chemistry student at t he University of the West Indies, Mona. You can find him on Twitter (@jcknight2) and his contributions on www.everymickle.com. He is an analyst who also appears on Taking Stock which is on Youtube.