Shareholder groups come together to launch renewed bid for RBS investor committee

Around 100 Royal Bank of Scotland investors have backed renewed plans for a shareholder committee to be established in order to improve the 73 per cent state-owned bank’s corporate governance.

ShareSoc and the UK Shareholders’ Association (UKSA) are to represent the interests of UK investors in making a second bid to requisition a vote at the annual general meeting of RBS after a similar move was rebuffed a year ago.

Documents linked to the proposed resolution have now been delivered to RBS’s London offices in a move aimed at bringing about a vote at the bank’s AGM in May.

The group of active shareholders said current methods of engagement – including “cosy chats with selected shareholders behind closed doors” – were not working.

In raising their requisition, ShareSoc and UKSA have put forward nine benefits of having a shareholder committee.

They include the introduction of “systematic briefings” for committee members and the establishment of a new forum to allow views to be expressed and questions raised.

ShareSoc and UKSA said the committee would focus on governance and strategy issues facing RBS and would not interfere with the day-to-day management of the business.

“Shareholders, including individuals, deserve a new approach; one with greater involvement and more effective input from them as ultimate owners,” said ShareSoc chairman Mark Northway.

“RBS, given its incredibly poor track record and consequent taxpayer support, should now be leading from the front in governance matters.”

ShareSoc campaign manager Cliff Weight said: “Since ShareSoc first engaged with RBS in December 2016, there have been several positive developments which we recognise and applaud, but there remains much more to be done on shareholder democracy.”

An RBS spokesperson 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.

“In line with the Government’s response to its Green Paper on Corporate Governance Reform, and the FRC’s current consultation in respect of the UK Corporate Governance Code, we will further enhance our focus on strengthening the voice of employees and other nonshareholder interests at board level as an important component of running a sustainable business.”