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| Implementation of eDividend |
Contributed by Mr Daniel Chew Wai Huan, Share Registration Department
In his Budget 2010 speech last year, the Prime Minister and Financial Minister, Dato’ Sri Mohd Najib Bin Tun Haji Abdul Razak called upon PLCs to offer eDividend to shareholders. On 26 October 2009, the Securities Commission issued a statement that eDividend would be offered by the third quarter of 2010. The paperless dividend payment system will result in increased convenience and faster access to dividends within a secure environment for shareholders. It eliminates the need for them to visit the bank to deposit dividend cheques which are posted to them, as well as the problem of misplaced, lost or expired cheques.
Shareholders can provide their bank account details to their stockbrokers for the purpose of eDividend via the submission of an ‘eDividend Form’ from 19 April 2010 onwards. The form can be obtained from their stockbrokers or downloaded from Bursa Malaysia’s eDividend webpage (www.bursamalaysia.com/website/bm/trading/download/
Bursa_Msia_FMN050_eDividend.pdf). Shareholders will be given a one-year period to provide their bank account details for eDividend beginning 19 April 2010. Those who do so after 18 April 2011 will be charged an administrative fee. |
The following is a brief description about eDividend:
What is eDividend?
eDividend is a service which allows an issuer to electronically pay your cash dividend entitlements directly into your bank account instead of making payment via bank cheques.
One of the main objectives of implementing eDividend is to promote greater efficiency of the payment system which is aligned to the national agenda of migrating to electronic payment.
Registration
How do I register for eDividend?
- To register, complete the relevant prescribed form which can be obtained from any stockbroker's office or downloaded from Bursa Malaysia's website and submit the form and relevant supporting documents to the stockbroker's office where your CDS account is maintained.
- If you are unable to be present at your stockbroker's office to submit the form and supporting documents, please ensure that your documents have been witnessed by an acceptable witness specified by Bursa Depository. An acceptable witness includes an Authorised Officer of a stockbroker, a Dealer's representative, a notary public, or an authorised officer of Malaysian Embassy/High Commission.
- If your CDS account is held in the name of a nominee, the nominee will register for the eDividend.
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