Question 1

Are employee shares registered directly in the employee's name?

Accepted Answer

Yes. Under the Shares Saver model, each employee participant is registered as the direct beneficial owner of their shares at the Central Securities Clearing System (CSCS). The employee holds their own CSCS account, and shares are credited to that account — not held in a nominee pool or omnibus account on behalf of all participants. This means the employee's ownership is recorded at the official Nigerian securities registry without reliance on the employer or administrator to prove entitlement.

Question 2

What is the CSCS and why does it matter for employee share custody?

Accepted Answer

The Central Securities Clearing System (CSCS) is the central depository for all Nigerian Exchange Group (NGX) listed securities. Every listed share in Nigeria is dematerialised — it exists as a digital record at CSCS, not as a paper certificate. When an employee's shares are registered at CSCS in their own name, their ownership is independently verifiable at the central registry. This provides a level of ownership security that paper certificates or ledger-only records cannot match.

Question 3

What happens to an employee's shares if Shares Saver ceases to operate?

Accepted Answer

Because shares are registered directly at CSCS in the employee's name, they are not affected by any change in the scheme administrator's operational status. The shares belong to the employee independently of Shares Saver. In a wind-down scenario, employees would retain full access to their shares through any NGX-licensed stockbroker using their CSCS account number. The administrator's role is operational — it does not hold the shares on behalf of participants.

Question 4

What happens to unvested shares if the company is acquired or delisted?

Accepted Answer

The treatment of unvested shares on a change of control or delisting event is governed by the scheme's trust deed and plan rules. Common provisions include: automatic accelerated vesting of all unvested shares on a change of control (full acceleration); partial acceleration based on time served; or cash settlement at the last traded price. The specific provision must be documented in the scheme rules and disclosed to participants at enrolment. Shares Saver ensures these provisions are clearly documented and reflected in the administration system.

Question 5

How are employee share scheme funds segregated from company assets?

Accepted Answer

Scheme funds — the cash held pending allotment of shares — are held in a dedicated trust account established under a formal trust deed, separate from the operating accounts of both the employer company and Shares Saver. The trustee is typically an independent financial institution. This segregation means that if the employer company faces financial difficulty, scheme funds cannot be treated as company assets available to creditors. CSCS-registered shares are already legally owned by individual employees and are entirely outside the company's balance sheet.

Question 6

Can an employee see their CSCS account and share balance independently?

Accepted Answer

Yes. Every Shares Saver participant has access to their personal dashboard showing their live CSCS account details, registered share balance, vesting schedule, dividend history, and transaction history. Employees can also verify their holdings independently through any licensed stockbroker or by contacting CSCS directly using their CHN (CSCS Holder Number). The combination of direct CSCS registration and a transparent participant portal gives employees full independent visibility of their ownership.

Employee share custody structure in Nigeria

Registered in your name

Trades executed by licensed brokers

Money held separately

How employee shares are held

1. Direct CSCS registration

2. Segregated trust account

3. Participant transparency

Questions answered

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