RBS shareholders propose overturning corporate governance in successive rebellion

A large number of RBS shareholders have put forward a proposal to “improve corporate governance and shareholder engagement” at the majority state-owned bank.

More than 100 investors have called for a vote after a similar proposal was turned down on legal grounds last year.

The move would put smaller shareholders in a stronger position to correspond directly with the board of directors.

The group, led by shareholder associations ShareSoc and UK Shareholders’ Association, said talks currently take place with “selected shareholders behind closed doors”.

In a statement, the group said: “The informal nature of current shareholder engagement (cosy chats with selected shareholders behind closed doors) does not work well for the broad shareholder base.

“It is not clear whether investors are each being told the same story, how information is being spun, or whether complete or only partial information is being given out.”

ShareSoc said it hopes its plan will be put to a shareholder vote at the bank’s annual general meeting in May.

RBS said: “RBS is aware that ShareSoc have been running another campaign as regards a shareholder committee. Whilst it is of course the role of the company directors to represent shareholders, we will review any proposal that is submitted and make our response clear in due course.”

The bank is expected to make a decision in January.

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Nigel is the Managing Partner and Head of Litigation and Dispute Resolution in the London office of Mackrell Turner Garrett.
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