Shareholder groups ShareSoc and the UK Shareholders’ Association (UKSA) have launched a second attempt to force taxpayer-owned Royal Bank of Scotland to create a shareholder committee to improve corporate governance after a first attempt failed earlier this year.
The groups have organised more than 100 investors to put forward a proposal for consideration at RBS’ annual general meeting (AGM) next year calling for the creation of a committee that includes shareholder representatives.
RBS will now decide whether to include the new proposal at the next AGM, where it would then be voted on by shareholders.
ShareSoc said it was confident that RBS “will be obliged to put the resolution to the AGM.”
The UK taxpayer still owns more than 70% of RBS following the UK Government’s £45.5 billion bailout of the bank during the last financial crisis.
“Shareholders, including individuals, deserve a new approach; one with greater involvement and more effective input from them as ultimate owner,” 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.”
An RBS spokesman told Reuters: “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.”