Choppies Enterprises Limited has recently implemented a significant change in its dividend payment process. This move, aimed at enhancing shareholder experience and efficiency, marks a noteworthy development in the company’s financial operations.
Dividend Declaration and Initial Announcement
The company declared a dividend for the six-month period ending 31 December 2023, as announced on 29 February 2024. Subsequently, on 15 March 2024, shareholders were notified of this dividend declaration through official channels on the BSE and JSE.
Initial Dividend Payment Process
Initially, shareholders entitled to dividends of less than BWP15 were required to follow a specific process outlined in the 25 March Announcement to claim their dividends. This process involved manual steps for shareholders to receive their payments.
Feedback and Revised Approach
Following the 25 March Announcement, the company received feedback from shareholders regarding the dividend payment process. In response to this feedback, the Board of Directors decided to streamline the process for shareholders.
Revised Dividend Payment Process
The revised approach entails making direct electronic fund transfers (EFTs) to shareholders’ bank accounts registered with the Central Securities Depository (CSD) for dividends of BWP15 and less. This streamlined method aims to expedite dividend payments and improve overall shareholder experience.
Benefits of Electronic Fund Transfers (EFTs)
Implementing EFTs offers several advantages, including:
- Efficiency: EFTs eliminate manual processing steps, leading to faster and more accurate payments.
- Convenience: Shareholders can receive dividends directly into their bank accounts, reducing the need for physical transactions.
- Transparency: Electronic transfers provide a transparent record of dividend payments, enhancing accountability and tracking.
Management of Unclaimed Dividends
For shareholders without accessible bank details or CSD accounts, the company will hold their dividends in trust until they are lawfully claimed. This ensures that shareholders’ interests are protected, and dividends are disbursed appropriately.
Three-Year Unclaimed Dividends Policy
The company’s policy stipulates that dividends unclaimed for three years may revert to the company and be utilized for its benefit. This policy aims to prevent unclaimed dividends from becoming a long-term liability while adhering to regulatory requirements.
Differentiation Between BSE and JSE Shareholders
It’s important to note that the streamlined dividend payment process applies specifically to shareholders registered on the Botswana Stock Exchange (BSE). Shareholders on the Johannesburg Stock Exchange (JSE) are not subject to these changes.
Conclusion
Choppies Enterprises Limited’s decision to streamline its dividend payment process reflects a commitment to enhancing shareholder value and operational efficiency. By leveraging electronic fund transfers and encouraging shareholder engagement, the company sets a precedent for modernizing financial transactions in the retail sector. This proactive approach not only benefits shareholders but also strengthens Choppies’ position as a leading player in the industry.
