Have you tried to cash a dividend cheque only to be told your shareholding is “Dormant”? Or perhaps you logged into a registrar portal and saw your balance listed as “Inactive”?
Don’t panic. Your shares haven’t been sold (yet). They have simply been put to sleep for your own protection.
Why Accounts Go Dormant Registrars are required to protect shareholders from fraud. If they suspect you aren’t receiving their mail, they lock the account.
- Trigger 1: Uncashed Cheques. If you haven’t cashed a dividend cheque in 12+ months.
- Trigger 2: Returned Mail. If a letter bounces back from your registered address.
The Consequence While your account is dormant, you will not receive any dividend payments. The money piles up in a holding account at the Registrar. If left for 12 years, this money can be forfeited back to the company.
How to “Wake Up” Your Shares To reactivate the holding, you need to prove you are still the legal owner.
- Contact the Registrar: You must write to them (Equiniti/Link/Computershare) quoting your Shareholder Reference Number.
- The “Reactivation” Form: They will send you a specific form to sign.
- ID Check: You may need to provide a certified copy of your ID (Passport/Driving Licence) to prove you are the person named on the register.
- Bank Mandate: To stop this happening again, instruct them to pay future dividends directly into your bank account (BACS) rather than by cheque.
Can Divica Help? Yes. Finding the right department to “unlock” an account can be difficult. Divica provides the specific contact details for the Reunification Teams at major registrars, bypassing the general enquiries line.