ShareSoc has advocated the implementation of Shareholder Committees since our inception in 2011. Recently this initiative has received support in the form of the Government’s November 2016 Green Paper on Corporate Governance, and in the form of Chris Philp M.P.’s September 2016 paper entitled Restoring Responsible Ownership.
ShareSoc has decided to focus on RBS as a complex enterprise whose governance would benefit from the adoption of a Shareholder Committee.
ShareSoc has submitted a resolution for the RBS AGM requesting the implementation of an RBS Shareholder Committee.
If you want to prevent further failures at RBS by creating a Shareholder Committee, please support this initiative. Please register your interest by completing the form below.
- The primary role of the Shareholder Committee is to improve the agency model of corporate governance by increasing the engagement and oversight of Shareholders in the operation of the companies owned by them.
- ShareSoc have been campaigning for many years for the establishment of Shareholder Committees. ShareSoc have written a detailed paper on the subject. See Shareholder-Committees.
- The MP, Chris Philp, wrote an excellent paper on shareholder committees in Sept 2016 and this has received wide publicity. See Responsible Ownership. ShareSoc have a number of concerns about the practicalities of a few of his suggestions and are in the process of writing to him to explain how the Shareholder Committee can best be implemented.
- The Nov 2016 Government Green Paper on Corporate Governance mentions Shareholder Committees as a way forward that could be mandated or could be adopted via the UK Corporate Governance Code or voluntarily. See Green Paper.
Royal Bank of Scotland (RBS)
- RBS is a hugely underperforming company and since 2007, long term investors have lost 95% of the value of their investment, largely due to failures in corporate governance.. RBS is 70% owned by the Government via UKFI, so it is important to all the people in the UK that RBS has good corporate governance. Therefore, RBS should be in the forefront of adopting Shareholder Committees.
- We have submitted a resolution to the AGM. Legally, we can do this so long as we have over 100 shareholders supporting the motion who hold collectively 10,000 RBS shares (about £22,000 at today’s price).
ShareSoc hope that other companies will follow the RBS example and voluntarily adopt Shareholder Committees. If companies resist, then it is our intention to submit AGM resolutions to other companies.
More background information and the proposed Resolution is present in this document: RBS-Campaign-Background-Information .
Regular updates on the RBS Campaign will be posted on this web page and on the ShareSoc blog.
Update 1 30/12/2016. This press release was issued on the day of the submission of the Requisition to RBS: Press085 . The final version of the resolution as submitted to RBS is present in this document: RBS-AGM-Resolution.
Update 2 01/02/2017. This press release was issued after RBS unreasonably rejected ShareSoc’s requisition for an AGM Resolution: Press087
Update 3 11/03/2017. This update was sent to all campaign supporters: Update-3.
FT Article 01/04/2017. The Financial Times have published an article on the refusal of RBS to put a resolution to the AGM on shareholder committees. See this blog post for commentary on it.
Please write to the Chairman of RBS to support the requisition. A suggested letter you could use as a template is present here: Letter-to-Chairman
Update 4 Press Release 11/04/2017. ShareSoc issued this press release giving voting recommendations for Annual General Meeting of RBS: Press093 TBA
Update 5 16/06/2017. RBS Shareholder Committee Campaign: Click here to read.
For more information on ShareSoc, go here: About
If you wish to make a voluntary contribution to support the costs of running this campaign please go to this page of our web site: Donations. Alternatively we do recommend a paid subscription to ShareSoc which gives you many other benefits.
Please use the form below to register your interest in this campaign (you will receive confirmation by return within 48 hours). You will be given free Associate Membership of ShareSoc unless you opt not to receive it, if you are not already a Member. Note that you may omit your telephone number, if you prefer not to disclose it, but we do need a postal address as we may need to send you forms for signature if we requisition an EGM or resolutions. It also helps us to know the number of shares in RBS you hold.