It has been brought to my attention that insurance company Aviva (AV.) are to stop paying dividends via cheque. Unless shareholders supply bank account information and accept direct payments into them, they will not get paid their dividends in future. This particularly affects those shareholders who hold their shares in certificated form or as personal crest members where payment by cheque is the default method.
Another company that introduced this rule a year or two back was Vodafone, despite the objections of many shareholders. As someone who regularly receives dividend cheques as I am a personal crest member, I do find this is preferable to receiving them directly into a bank account as it is clear when the payment is received and who it is from so I do not need to continually check an account statement. Unless all dividends are paid that way, which seems unlikely in the near future, it just adds extra complexity to have some paid by cheque and some paid directly. There is also the extra security risk of having your bank details known to lots of people (don’t think that is worry – ask Jeremy Clarkson who thought the same until he gave his bank details out on the television). Another retrograde step in essence so far as direct shareholding is concerned.
Affected shareholders might wish to complain to the Chairman of the company, Sir Adrian Montague. And let me know if you think this is of concern and ShareSoc may take up the issue.
Roger Lawson
