Lost Securities

[Notalawyer1]

I'd like to ask for advice in recovering lost securities.

Many years ago (1980-85) I invested in a publicly traded company. I purchased the stock through a discount brokerage (which subsequently merged with one, then another larger brokerage house). I took possession of the stock certificates myself at one point (about 15 years ago). At present I do not have the certificates and believe they are lost.

I contacted the transfer agent for the company last week, explained the situation and received some less than helpful advice. I was instructed to contact the (now defunct) brokerage house through which I purchased the stock and ask them to investigate. Barring that, I was told to search the State's unclaimed property database, which I did, and found nothing.

My question is the following: Is it unreasonable to expect a (large) publicly traded company to retain records of who their stockholders are, how many shares they own, and when they were purchased/sold? If indeed their records show that I am a present stockholder, I will gladly pay for any necessary surety bonds for the issuance of a new certificate.

A second question is: Is there a service which can investigate this for me? (I'd be happy to pay the fee.) How should I proceed?

Thank you in advance for your advice.

 

[army judge]

My question is the following: Is it unreasonable to expect a (large) publicly traded company to retain records of who their stockholders are, how many shares they own, and when they were purchased/sold?

No, it is unreasonable to expect the brokerage to retain your records three decades after an alleged purchase.

By way of comparison, the IRS only requires you retain your income filings for seven years.

A second question is: Is there a service which can investigate this for me? (I'd be happy to pay the fee.) How should I proceed?

You could contact the SEC and ask them if you have any chance at recovering these transactions.

 

[Notalawyer1]

Thank you for your quick response.

You state that after three decades it is unreasonable to expect a publicly traded company to keep track of who their stockholders are. Yet, if that is the case, then wouldn't it be impossible for a company to identify who their major stockholders are and isn't it important that they know who the majority shareholders are to conduct board meetings, and so forth?

The analogy of a check register comes to mind. If I have checks outstanding, even though they may be years (or decades) old, they're still outstanding. I can't ignore them, can I? Likewise, I would think that a company would like to know if there's someone (or some entity, like a corporation) that owns a significant percentage of their company. After all, stockholders are "owners" of the company, aren't they?

I'm anxious to hear what you think.

And thank you for taking the time to respond.

 

[army judge]

Thank you for your quick response.

You state that after three decades it is unreasonable to expect a publicly traded company to keep track of who their stockholders are. Yet, if that is the case, then wouldn't it be impossible for a company to identify who their major stockholders are and isn't it important that they know who the majority shareholders are to conduct board meetings, and so forth?

The analogy of a check register comes to mind. If I have checks outstanding, even though they may be years (or decades) old, they're still outstanding. I can't ignore them, can I? Likewise, I would think that a company would like to know if there's someone (or some entity, like a corporation) that owns a significant percentage of their company. After all, stockholders are "owners" of the company, aren't they?

I'm anxious to hear what you think.

And thank you for taking the time to respond.

You asked about the brokerage firm, not the company.

The company might have a record of you as a stockholder.
You could contact their stockholder relations department.
If they have a record of you, you would be receiving invitations to the annual stockholder's meeting.

You might want to honor decades old checks, but under the law they would have been dishonored by your bank.

Most checks grow stale after a year or two.
Some become stale after 90 days.

 

[Notalawyer1]

Thank you again.

For clarification, I asked about the publicly traded company, not the brokerage, which I pointed out had merged and no longer existed.

I think we've gotten off track a bit. My question is not whether an old stock certificate is negotiable. Rather, can I with the company's help prove that I am the legitimate owner of said stock.

To your point about contacting the company, I did that. I was referred to the transfer agent (the company's representative who provides shareholder services) who provided no help whatsoever.

If anyone is maintaining a database of current shareholders I would have thought the transfer agent would be that person.

Would you recommend that I search for an attorney who specializes in securities? (I don't know if such specialty exists, personally.) Or, would a full service brokerage accept an assignment (paid, of course) to investigate it on my behalf?

Thank you.