Reasons for Loss of Contact between Company and Shareholder:
Shareholder Deceased: In the event of a shareholder’s death, if the shares were not discovered during the probate process, despite the existence of a will and grant of probate, contact may be lost between the company and the shareholder.
Shareholder’s Intestate Status: If the shareholder died without leaving a will, it can be challenging to find evidence of share ownership among the deceased’s documents, leading to a loss of contact with the company.
Inactive Shareholder: In some cases, shareholders fail to cash their dividends for various reasons. If a shareholder does not inform the registrar about a change of address, and the company deems the account dormant due to inactivity, further correspondence may not be sent to the shareholder. This can result in the shareholder simply forgetting about their shares.
Missed Merger or Acquisition Announcement: If a shareholder fails to receive or notice a crucial announcement regarding a merger or acquisition, they may become unaware of the new company name associated with their shareholding. This lack of information can contribute to a loss of contact between the company and the shareholder.