Rentokil uses unclaimed dividends to launch charitable fund

Rentokil Initial announced on Friday that it would use unclaimed shareholder dividends and unclaimed shares to fund charitable causes through the establishment of a new fund, named ‘Rentokil Initial Cares’.

The FTSE 100 pest control and business services group said that according to data published in Link Asset Services' UK Dividend Monitor, the total value of dividends paid by UK companies was £32.3bn in the third quarter of 2018, with the total amount paid by UK companies for the full year - including both regular and special dividends - on track to reach £100bn.

While the “vast majority” of dividends were claimed by shareholders, Rentokil said that each year a small percentage remained unclaimed, with a small number of shareholders untraceable.

In line with UK company law, those ‘dormant’ funds could be returned to companies after 12 years.

At Rentokil Initial, the total value of unclaimed dividends and shares currently stood at more than £1m.

“After trying our best to contact the relevant shareholders, we will now use the value of any unclaimed shares and unclaimed dividends to support good causes,” said Rentokil Initial chief executive Andy Ransom.

“But imagine this kind of impact multiplied a hundred times over - it could make a huge difference and I hope other companies will join us.”

Ransom said the company’s new good causes fund, ‘Rentokil Initial Cares’, would support the own charitable efforts of its staff around the world, and good causes in line with its mission to ‘protect people and enhance lives’.

“I would expect us to commit around £250,000 to good causes each year.”