Share dividends paid in error


S

skip

A friend sold some shares about 12 years ago but has continued to
receive dividend payments since until recently when he received a
letter telling him that there had been an error and requesting him to
refund the total sum of dividends received by submitting a cheque for
the total value. He has no problem refunding the money but feels it is
unfair that he has been asked to refund it in one lump sum payment. He
is suggesting repaying monthly over 6 years. Is this unreasonable?
Should he be expected to repay it in one lump sum payment?
 
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Y

yoosnet

A friend sold some shares about 12 years ago but has continued to
receive dividend payments since until recently when he received a
letter telling him that there had been an error and requesting him to
refund the total sum of dividends received by submitting a cheque for
the total value. He has no problem refunding the money but feels it is
unfair that he has been asked to refund it in one lump sum payment. He
is suggesting repaying monthly over 6 years. Is this unreasonable?
Should he be expected to repay it in one lump sum payment?

Did he feel it was unfair when he spent 12 years receiving dividends
that he knew he wasn't entitled to?
 
T

Troy Steadman

A friend sold some shares about 12 years ago but has continued to
receive dividend payments since until recently when he received a
letter telling him that there had been an error and requesting him to
refund the total sum of dividends received by submitting a cheque for
the total value. He has no problem refunding the money but feels it is
unfair that he has been asked to refund it in one lump sum payment. He
is suggesting repaying monthly over 6 years. Is this unreasonable?
Should he be expected to repay it in one lump sum payment?
Your friend has almost certainly committed a criminal offence and would
do well to pay the maney back ASAP. Have a look through this thread:

http://tinyurl.com/7stbd


--
 
A

Alex

Troy said:
Your friend has almost certainly committed a criminal offence and would
do well to pay the maney back ASAP. Have a look through this thread:

http://tinyurl.com/7stbd
If he didn't realise it (and can anyone prove he did?) and he's spent
the money I don't see 1) how he's committed an offence, and 2) why he
has to pay it back.
 
E

Eric Jones

Alex said:
If he didn't realise it (and can anyone prove he did?) and he's spent the
money I don't see 1) how he's committed an offence, and 2) why he has to
pay it back.
It's a small world. The place where I work recently had a complaint from
someone who had not had a dividend for about 10 years because the dividend
was paid wrongly into someone else's account. The registrars quickly coughed
up the divs even though it had not been proved that they had actually
inputted the wrong account details!
Divs amounted to around £150 in total not sure if they will attempt to
reclaim from the person's account whose had the divs all this time.
 
T

Tiddy Ogg

If he didn't realise it (and can anyone prove he did?) and he's spent
the money I don't see 1) how he's committed an offence, and 2) why he
has to pay it back.
There is no question that he shouldn't have got the money, but
claiming ignorance and being civil to the registrars should, I would
hope, allow some staggered repayment. As others have said, it
probably depends on the amount.

Putrid poetry, dismal doggerel, extrava-stanzas...
http://www.tiddyogg.co.uk
 
F

fred

A friend sold some shares about 12 years ago but has continued to
receive dividend payments since until recently when he received a
letter telling him that there had been an error and requesting him to
refund the total sum of dividends received by submitting a cheque for
the total value. He has no problem refunding the money but feels it is
unfair that he has been asked to refund it in one lump sum payment. He
is suggesting repaying monthly over 6 years. Is this unreasonable?
Should he be expected to repay it in one lump sum payment?
There is a time limit on recovery of a debt which I believe is 6 years. I do
not know whether this would apply in these circumstances but if it does
then he could avoid repaying all but the last six years. If these payments
are small and have been entering by BACS then it would be credible to say
that they had not been noticed but if he has been cashing cheques then it
suggests dishonesty.

IANAL, IANAA
 
P

Peter Saxton

There is a time limit on recovery of a debt which I believe is 6 years. I do
not know whether this would apply in these circumstances but if it does
then he could avoid repaying all but the last six years. If these payments
are small and have been entering by BACS then it would be credible to say
that they had not been noticed but if he has been cashing cheques then it
suggests dishonesty.

IANAL, IANAA
I disagree with the dishonesty bit because some people don't know what
shares they hold and would assume they did hold them if they had a
portfolio of shares.

I think a six year repayment schedule is too long but it should depend
on the persons income and amount to be paid.

I think the six years limit on recovery of debt applies in this case.
 
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F

fred

Peter said:
I disagree with the dishonesty bit because some people don't know what
shares they hold and would assume they did hold them if they had a
portfolio of shares.
I think there would certainly be a risk of it which is why I mentioned it. If for
example it was a quarterly dividend, paid by cheque and one of only a few
investments then it would be difficult to argue that the sale of the shares
only 1-3mths before had been forgotten.
I think a six year repayment schedule is too long but it should depend
on the persons income and amount to be paid.

I think the six years limit on recovery of debt applies in this case.
Seems fair that the company should suffer some small loss for a
negligence covering 12 years; I'm guessing this is a small amount to have
avoided detection for so long.
 

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