Small shareholders in Royal Bank of Scotland Group (LON:RBS) have renewed a bid to overhaul the state-backed bank’s governance processes, The Telegraph reports. The move comes as small investors look to give themselves more of a say in how the part government-owned lender is run.
RBS’ share price has climbed marginally higher in London this morning, having added 0.34 percent to 277.15p as of 08:44 GMT. The stock is marginally outperforming the broader market, with the benchmark FTSE 100 index currently standing 0.15 percent higher at 7,634.16 points.
Small RBS investors push for governance overhaul
The Telegraph reported this morning that ShareSoc, a not-for-profit group which represents retail investors, had claimed that 100 RBS shareholders had backed its call for the blue-chip lender to create a shareholder committee and that it would be pressing for a vote on the matter at its annual general meeting in May.
“The informal nature of current shareholder engagement (cosy chats with selected shareholders behind closed doors) does not work well for the broad shareholder base,” the shareholder group said, as quoted by the newspaper.
ShareSoc first proposed the creation of a committee this time last year, but RBS chose not to put it to a vote, claiming it was “inconsistent with the law and the company’s constitution”. Earlier this year, the advisory group urged members to vote against the lender’s remuneration report, and opposed the re-election of the company’s chairman Sir Howard Davies after the bank refused to offer greater powers to retail investors.
RBS to review latest proposal
A spokesman for the bailed-out lender told the newspaper that the company was aware that ShareSoc had been running another campaign for a shareholder committee, and that while it was “of course the role of the company directors to represent shareholders,” the group would nevertheless “review any proposal that is submitted and make our response clear in due course”.