Bank facing pressure for change
RBS investors revive call for representation
RBS HQ: A resolution will be included in next years AGM (photo: Terry Murden)
Private investors in Royal Bank of Scotland are to make a further attempt at establishing a shareholder committee at the company.
More than 100 shareholders have requisitioned a resolution calling for shareholder representatives to improve the corporate governance and shareholder engagement at RBS.
The bank will have to put this proposal to a vote at its Annual General Meeting in May.
However, it has little chance of success while the government holds 72% of the company’s shares and can vote it down.
Shareholder groups ShareSoc and UKSA have supported and coordinated the lastest move and will deliver the resolution and a large bundle of associated requisition forms to RBS’s London offices today (29 Dec).
Mark Northway, ShareSoc chairman, said: “Shareholders, including individuals, deserve a new approach; one with greater involvement and more effective input from them as ultimate owners.
“RBS, given its incredibly poor track record and consequent taxpayer support, should now be leading from the front in governance matters.”
Cliff Weight, director of ShareSoc who has coordinated the campaign, said: “The current method of engaging between shareholders and listed UK companies doesn’t work.
“We think our proposal at RBS is a good starting point and an example for others to follow.”
In early 2017, RBS rebuffed ShareSoc’s first attempt to requisition a shareholder resolution, hiding behind what the campaigners called “tenuous, expensive legal arguments”.