Legal Question in Securities Law in California

Well, someone failed to look after your property carefully. Somewhere along the line, there was probably a mistake in responding to correspondence, or a failure to report changes of address to the broker, corporate secretary, transfer agent or whomever. So, the share of stock fell into an unclaimed property category and escheated to the state.

Code of Civil Procedure sections 1300 through 1615 comprehensively cover the California law of unclaimed property. I have not even glanced at this provisions in years, and could not begin to explain all the provisions. Also, the law seems to have been extensively amended in 2010. I do know that long-idle accounts in the hands of banks, brokers, etc. are considered unclaimed when dividend checks, periodic statements of account and other communications become undeliverable, and the holders must turn the property over to the State of California for custody after a while. I believe the property can be redeemed by proper application within five years, and perhaps thereafter if you were a minor (under 18) during part of the period.

After the claim period expires, I believe the state becomes the owner, period.

The stock would not be "canceled" and you probably don't have a claim against the issuer. Your recourse is against the state, or perhaps against your custodian if the mis-handling of records caused the escheatment to occur in the first place.

You might do an on-line search using search terms including California, escheat, unclaimed property and claim to locate the right government department - I think it is the State Controller's office - to initiate a claim.