Essentially, the brokers are selling client's shares without their knowledge! Even if the shares are "replaced" the clients/shareholders may not get dividends since the Listed Firm only recognises shares held by in the client's name.
Until this loophole is patched, all long-term investors should insist on share certificates to forestall the crooked stockbrokers' dealings. There are extra steps & it is not as convenient but safer.
With a certificate, you can use any broker without the hassle of transferring shares. You will need to "immobilise" & "dematerialise" the shares. Many of the large shareholders have NOT placed the shares with the CDSC.
Furthermore, except for fraud by having duplicate certificates, the share cannot be sold as (apparently) francis thuo & thieves did...
Who would you rank as the top 5 trustworthy brokers?
My list includes (in no particular order):
- African Alliance