Use of information technology in cash transaction of listed companies for payment of dividends

Electronic dividend remittance encouraged to reduce delays and improve transparency through shareholder consent and bank account nomination.

Companies may remit dividends in cash, by cheque or warrant, and may also transmit dividends electronically where shareholders consent and nominate a bank account. The circular highlights losses and delays from postal warrants and, citing a vigilance recommendation favouring computerised remittance for transparency, urges listed companies to obtain shareholder authorisations for electronic transfer and to implement such procedures promptly to avoid delays and protect investors.