Expert: Steven Taylor - 12/6/2011

Question
QUESTION: I have stock certificates I found in my fathers belongings from Embassy Mines and realize the name changes of these stocks. I contacted KHD and found that my fathers name was in the data base of KHD but I was told to contact Melon, which I have and they cannot find his name anywhere. Now KHD has split into two entities. What I am wondering is did any of these companies pay dividends and if so what would have happened to those dividends? Wouldn't they have bought more shares or are they hanging out there somewhere?

Thank you,
Shirley

ANSWER: Shirley, the long history of the KHD related companies has so many twists and turns that some confusion is inevitable. What you need to do is search the missing property offices of every State or Province in which your father lived from the time he acquired the original Embassy shares. You can search many of them online for free at www.missingmoney.com and www.naupa.org. Search both, as they have different participants. Search using your father's name exactly as it appears on the certificate, even if it is misspelled or abbreviated. Any dividends, splits or new shares may have been turned over to the government for safekeeping if they were unable to find your father.

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QUESTION: I have done all of this to no avail. I contacted Mellon Bank and they said they were not the transfer agent until 2003. How would I find out who the transfer agent was from 1987-2003?

Thank you,
Shirley

ANSWER: Shirley, KHD's Investor Relations department should be able to tell you who the transfer agent was during that period. However, I doubt that information will help you. When a transfer agent changes, the old agent provides the new one with all the past records. The old agent, whoever it is, should not have any of that information in their possession - Mellon should have it all.

What did Mellon say about the old certificates? I assume you sent them copies? And, did you search the missing property departments?

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QUESTION: They told me to do the searches of each state, I have, and everywhere else I can think of and they told me they didn't have anything on that name. They said they weren't the transfer agent until 2003 so I took that to mean they didn't have anything prior to 2003.
I have sent this info to them twice. The second time I sent it they had me do it because they said they could not give the information out via e-mail. Then when I got it back they sent me the same letter as they did the first time only they included the information about the transfer agent.

Answer
Shirley, it is entirely possible that those certificates were cancelled somewhere along the line and new ones issued. People lost stock certificates all the time and (after payment of a lost certificate fee) had them reissued. Your father may have sold the new ones, which is why he doesn't show up on the ownership rolls.

However, even if this were the case, the transfer agent SHOULD provide you with that information. It is extraordinarily disappointing to hear that such a large and well known (and expensive# transfer agent cannot provide an individual with old certificates in hand even basic service. In my opinion, they have really dropped the ball and provided you with absolutely horrible customer service.

Since Mellon has failed #twice) to do their job, I suggest you contact KHD and see if you can get the ear of someone in their investor relations department to intervene with the transfer agent. Since KHD writes the checks, Mellon might be more inclined to listen if they ask.