Do Nationwide members have any way of forcing a vote on the building society’s controversial £2.9 billion takeover of Virgin Money?
Absolutely not, say the highly paid consultants, including Goldman Sachs, an organization known for its support of mutuality (clears throat, straightens tie).
The people fighting for the right to vote are at least resourceful. Their latest ploy is to ask their supporters to withdraw all but £100 from their Nationwide deposit accounts.
While this is enough to keep them as members, it would put enormous pressure on the board if enough people did so.
Campaign organizer Mikael Armstrong said:
“It is clear from Nationwide’s response to the campaign that they do not care about the legitimate concerns of their members. They do not abide by the law and do not follow their own rules that bind society.
“Management seems to be motivated only by greed and has lost touch with what keeps them working – the benefit of their customers, members and owners of the company. We therefore suggest to the supporters of the campaign that we hit them where it hurts the most – in their wallets.”
Nationwide did not respond to a request for comment.
Another question and answer from the rebel members:
Can members vote on the deal, even though Nationwide’s board and management have so far ruled this out?
“Yes. The Company’s Articles of Association provide that members may call an extraordinary general meeting if sufficient members request it. Section 14 of the Articles of Association describes the modalities.
At an extraordinary general meeting, members can propose a resolution for the members present to vote on. The aim of the campaign is to call an extraordinary general meeting and pass a binding resolution stating: “The acquisition of Virgin Money shall not proceed without the approval of a majority of Nationwide members.”
This would mean that if Nationwide wanted to go ahead with the takeover, it would have to hold a vote among all eligible members. The deal could then only go ahead if a majority of members supported it.”
Whether they are right or not, Mr Armstrong and Co. are clearly a nuisance to the Nationwide board. Good.
He added: “It is unfortunate that the campaign must now ask its supporters to take this direct action, which could damage the financial stability of the company. But given that Nationwide has failed to hold a vote on the proposed takeover or call an extraordinary general meeting to make this happen, this is the best way for members to express their displeasure at the company’s disregard for their legitimate concerns.”
I think the financial stability of society depends on us not buying Virgin Money. Maybe they should put it to a vote?
