National Commercial Bank (NCB) Jamaica is scaling back the operations of subsidiary NCB Jamaica (Nominees) Limited.
NCB Nominees, which operates out of the banking group's headquarters in New Kingston, will no longer act as intermediary to listed companies effective January 10, 2014.
Client companies are slated to receive a cheque representing unpaid and unclaimed dividends, as well as their records, soon after, the banking group said.
NCB Nominees is part of the financial services division created to provide both registrar and special services for corporations and employee share schemes. It also holds shares on behalf of investors.
The company was formed to capitalise on the growth of the Jamaican and Caribbean stock markets. NCB Nominees originally provided registrar services to eight companies whose stocks were listed on the Jamaica Stock Exchange. That number has now been reduced to six.
ROLE OF A BROKER
NCB representative explained that the normal business of the unit was to liaise with investors on the client company's books, pay dividends and pursue other correspondence on clients' behalf.
"We act like a broker," said the person, who asked not to be identified.
The letter circulated to NCB Nominees client companies said that the division would "cease to offer registrar and transfer agent services to companies outside of the NCB group" and would terminate outside agreements on January 10.
It also promised return of unused cheques, share certificates and reports and "our NCB cheque in your favour representing any unclaimed or unpaid dividends". The unit will also return all books of accounts and/or statements and records to facilitate the reconciliation of client records.
Clients will additionally be provided with their share registers, shareholders' attendance records and all other documents and materials in the company's possession.
Manager of group corporate communications at NCB, Belinda Williams, said the unit will not close.
"Decisions re staffing will be determined and communicated at the appropriate time. In the meantime, our team at Nominees is focused on effectively supporting a seamless scaling down process," Williams said.