Two shareholder groups representing the interests of UK investors are making a second bid to requisition a vote at the annual general meeting of RBS.
ShareSoc and the UK Shareholders’ Association (UKSA) first attempted to force the banking giant to hold a vote on the introduction of a shareholder committee ahead of the 2017 AGM.
However, their efforts were rebuffed by what they described yesterday as “tenuous, expensive legal arguments” put forward by the bank.
Undeterred, the pair are now making a second attempt to push the item on to the AGM agenda for 2018.
In raising their requisition, ShareSoc and UKSA has put forward nine benefits of having a shareholder committee.
They include the introduction of “systematic briefings” for committee memebers 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 added: “This year, we are hoping RBS will engage with us and work constructively in developing an improved corporate governance framework.
“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 non-shareholder interests at board level as an important component of running a sustainable business.”