The dividend distribution by Demetra Holdings has once again brought to the forefront the problems faced by small investors and the heirs of deceased shareholders. On the Alpha News program, Angeliki Fragou and Marios Salidis explained the transfer procedures, the costs involved, and the situations in which the involvement of a brokerage firm is required.
Angeliki Fragou, Head of the Central Securities Depository and Registry of the Cyprus Stock Exchange, clarified that the company distributing the dividend bears sole responsibility for the payment and reissuance of checks. In the event of the loss or destruction of a check, the shareholder must contact Dimitra; however, the procedure differs when the beneficiary has passed away. “However, when a shareholder has passed away, the stock exchange can arrange for the transfer of the securities to the heirs. The heirs will then go to the Dimitra company to complete its own procedures regarding the reissuance of the check,” he explained.
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Regarding the shares of deceased individuals, Ms. Fragou noted that the transfer requires the relevant supporting documents, including a death certificate and a tax clearance certificate from the Tax Department, and, if an estate administrator has been appointed, the relevant court order must also be submitted. He clarified that for securities valued at less than €2,000, the CSE can process the transfer without requiring the appointment of a brokerage firm. “If the value of the securities is less than 2,000 euros, then the stock exchange can process the transfer to the heirs, and they are not required to appoint a brokerage firm, although we do recommend that they consider it,” she noted, clarifying that the threshold refers to the total value of the deceased’s shares and not the amount attributable to each heir.
Regarding costs, Ms. Fragou stated that for transfers of low-value shares, a minimum fee of €20 applies, while the President of the Pan-Cyprian Association of Investment Services Companies, Marios Salides, estimated that the process through a brokerage firm could cost approximately €100, including the relevant procedures and certifications. He acknowledged the red tape citizens face, explaining, however, that the procedures are necessary to verify the legitimate heirs and protect the estate. For her part, Ms. Fragou emphasized that several requirements stem from the legislation governing the administration of estates of deceased persons in Cyprus and are not determined by the Stock Exchange.
Mr. Salidis also explained the difference between an investor’s holding on the CSE and an account at a brokerage firm. As he noted, working with a broker allows for direct access to investments and the automatic crediting of dividends, without the need to receive and deposit checks. At the same time, he pointed out that investors can hold onto their shares and decide later whether they wish to sell them, taking into account their value and the costs involved in the process.
Finally, special mention was made of Dimitra’s financial data and whether it is in the best interest of minority shareholders to retain their investments. Mr. Salidis cited the first-half results for 2026, according to which the company had cash reserves of €384 million, an amount corresponding to approximately €1.90 per share. He clarified, however, that these cash reserves do not necessarily imply a new dividend distribution, as it is up to the company to decide whether to distribute additional amounts to shareholders or to use the funds for new investments.
