Letter of indemnity for shares certificates

[oluwaseun247]

Hello guys,

Pls i want to know where i can sign letter of indemnity ,i was given the letter by intercontinental registrar for the replacement of my shares certificate,i took it to UBA for them to sign but when i got there i was told that they don;t sign letter of indemnity .

Looking forward to hear from you soon.

Thanks

[hispy99]

Originally Posted by oluwaseun247

Hello guys,

Pls i want to know where i can sign letter of indemnity ,i was given the letter by intercontinental registrar for the replacement of my shares certificate,i took it to UBA for them to sign but when i got there i was told that they don;t sign letter of indemnity .

Looking forward to hear from you soon.

Thanks

This is what I did when I lost my certificates (it was an expensive loss, trust me)

I took the letter of indemnity to GT Assurance and they signed it for me. The cost to me was the larger of: 1% of the market value of each certificate or N5,000. So if you have multiple certificates, then the above rule applies to each certificate. Before GT Assurance signed the indemnity letter, I had to get an affidavit from the High Court (can't remember the cost, but it was not expensive).

I believe you can use any insurance company (I used GT Assurance because I bank with GTB and they had a GT Assurance representative at my branch), but my bank (GTB) refused to do it for me.

Good luck

[Gengen]

I believe this is another frustration put on Shareholders. I had a similar problem with Union Registrars.

I did not get the bonus issue certificate for one of the companies they represent. On informing them, they requested for the following:
a. A Sworn Affidavit
b. Letter of Indemnity form

On reading through the Letter of Indemnity form and the gravity of what was stated in it, I knew no bank will probably give this. However, I still approached my two Banks who expectedly refused to give such a letter.

The Registrar based this requirement for Letter of Indemnity on their experience of a person who used his Share certificates as a collateral for a bank loan. After taking the loan, the person claimed that his certificate was lost, informed the Registrar and got a duplicate certificate. The duplicate certficate was then lodged and sold. Of course, he defaulted on the loan when it was due.

Based on Hispy99 feedback, the potential costs are:
1. "The cost to me was the larger of: 1% of the market value of each certificate or N5,000"
2. Cost of an affidavit from the High Court (can't remember the cost, but it was not expensive).

My comments are:
1. This is another source for "unclaimed certificates". If the value of the share is low, why would I go ahead and incur so much cost in getting the above requirements?
2. The Registrars are protecting themselves at the detriment of shareholders. A middle of the road solution should be arrived at.
3. The ultimate solution is to eliminate physical certificates completely. If shares are used as collaterals, the CSCS and/or Stock broker/NSE should be informed and the shares put on hold for trading.

[despi_dynasty]

IT IS NICE READING THROUGH ALL THESE WRITE-UPS ABOVE. IT IS VERY INTERESTING TO KNOW THAT SUCH A PROBLEM EXIST.

PLEASE IS ANY BODY IN THE HOUSE KNOW WHAT THE SEC'S OPINION IS TOWARD A PROBLEM OF THIS KIND? AT LEAST SEC IS MAKING A VERY GREAT IMPACT TO SEE THAT REGISTRARS SETTLE INVESTORS THE WAY THEY DESERVE IT. I BELIEVE SEC WILL NOT FOLD ARMS AND SEE SUCH HAPPEN TO INVESTORS.

THANX.

[olusolakemmy]

the registrar should guide against such fraud, not to make innocent investor spend money and time, because of lost certificate or the one that he did not even receive.

the issue of this certificate thing will always be a problem, simply cancel it, make cscs the sole medium of transaction.

i hope that our market develop fast so that such time wasting laws doesnt exist