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The escheatment process, which results in turning over unclaimed property to the state, generally is not well understood. However, its impact on public companies and their shareholders can be quite significant.
Over the past decade, escheatment has become an even bigger issue as cash-strapped states seek to maximize revenue. This brief guide will help executives of public companies develop a basic level of knowledge about escheatment, with emphasis on steps they can take to anticipate and prevent problems, utilize transfer agents’ services, and avoid unnecessary costs and anxieties.