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» Dividends » Locations » Coupon payments» Geographical Distribution for Banks
Dividends payment through the central depository system
Objectives of the system
1. To facilitate the process and reduce the cost for the disbursement of shareholders dues to encourage them to deal in stocks.
2. Provide complete protection for shareholders and ensure that they receive their dues.
3. Reduce the risk the shareholder face when they receive dues.
Advantages of the system
1. Ensure accomplishment of payment process as per the announced time frames.
2. Make direct payments to shareholder whether through banks participating in the system or through direct transfer to personal accounts or through delivery to clients address (City Bank service)
3. Possibility of paying more than one coupon at a time for more than one security.
4. Reducing the financial burden on the clients as the MCDR will not charge any fees for the payment process.
5. Ease and speed of payment process through a country-wide network.
6. Guarantee shareholders rights who didn’t receive their dues up to five years from the commencement of payments.
Methods of payment
First: cash payment
The shareholder or his proxy (Entity/Person) will visit one of the banks participating in the payment, the payment process will be completed in 3 to 5 minutes as a maximum.
Documents required for cash payment
In case of direct payment to the shareholder
Identity card
In case payment through proxy: -
1. Power of Attorney (General or specific)
2. Identity of the proxy
In case of payment to minors:-
1. Family ID card showing children's names and their birth dates.
2. Identity card or passport + minor's birth certificates
Second: Payment through transfer and draft cheques:
Shareholder will fill a certain form for the transfer of his dues to his personal account or to the account of any brokerage company/bookkeeping company/bank) to receive the payments on his behalf.
Methods of transfer:-
1. Transfer of the coupon value to the beneficiary's account at any bank inside or outside Egypt.
2. Issue bank cheques to companies and entities only.
3. Direct cash payment (for a maximum of L.E. 10,000) to the shareholder at the location he designates .
(To subscribe in this service, shareholders may visit any of the company's branches in Cairo, Alex or City Bank garden city branch).
The Required documents
In case of transferring to the account:
1. Identity card
2. Fill the form specified by MCDR
In case of authorizing another person:-
1. Power of attorney (General or specific)
2. Identity of the proxy
3. Fill the form specified by MCDR which is an acknowledgment from the proxy to transfer the Coupons value to his principal.
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