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RBS shareholders push for second corporate governance vote

RBS shareholders push for second corporate governance vote

More than 100 shareholders in the Royal Bank of Scotland (RBS) have submitted a proposal to set up a committee at the bank in order to improve corporate governance.

The move comes after a previous proposal was rejected by the government in May. 

The ‘shareholder committee’ would include shareholder representatives and seek to create better engagement with the bank.

The proposal has been supported by investor group ShareSoc and UKSA and was delivered to RBS’s London office yesterday. This means the bank will have to put it to a vote at its annual general meeting (AGM) in May 2019.

Last year, a similar resolution was submitted. However, it was defeated when UK Government Investments (UKGI), which represented 75.3% of the votes cast, decided to vote against it.

Cliff Weight, a director of ShareSoc, 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.’

ShareSoc chairman Mark Northway added: ‘Shareholders deserve a new approach; one with greater involvement and more effective input from them as ultimate owners. RBS, given its track record and consequent taxpayer support, should now be leading from the front in governance matters.’

In a statement, ShareSoc also stated that as the government is looking to reduce and eventually sell all its stake in RBS, ‘any means of increasing engagement with shareholders should be embraced’. 

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