INVESTORS in Royal Bank of Scotland will be given the chance to vote on the establishment of a shareholder committee at the institution when it holds annual meeting in May.
ShareSoc, the investors’ group which was been campaigning for greater shareholder influence at the bank in recent years, said the institution has accepted its requisition for a shareholder resolution. It means there will be debate and a vote on the establishment of a shareholder committee when investors gather for the bank's next annual meeting. The proposal needs 75 per cent of shareholder support before it can be carried.
A previous resolution by ShareSoc calling for such a committee to be established at the bank, which is 70 per cent owned by UK taxpayers, was blocked at its last AGM in May 2017. Royal Bank chairman Sir Howard Davies angered shareholders then when he said the bank could no accede to such a request because it would be incompatible with company law and against its constitution.
ShareSoc said Royal Bank can now “lead UK plc” by becoming the first to establish a shareholder committee. It said lessons can be learned from Sweden, where shareholder committees have been part of the corporate landscape for more than 20 years.
ShareSoc director Cliff Weight said: “ShareSoc and UKSA have fought for better shareholder engagement and shareholder committees for over 20 years. At last our efforts are being recognised. A positive vote at the AGM will be a great step forward for shareholder democracy.”
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