The campaign for Nationwide members to have a say on the proposed takeover of Virgin Money is proposing that their supporters withdraw all but £100 from their Nationwide deposit accounts.
The campaign has been protesting that Nationwide members should have a vote on the £2.9 billion proposed takeover of Virgin Money – which is what is expected to happen under Section 92A the Building Societies Act.
However Nationwide’s board and management have thus far refused to put forward a vote to the society’s members. Further, after a 1,000 strong petition was delivered with the requisite details to call a Special General Meeting of the society, Nationwide have failed to act and call a meeting under the society’s rules – instead deeming the request as “not valid” without c explaining why in detail.
The campaign is now calling on supporters to consider direct action, by withdrawing nearly all their money leaving just £100 each in the building society. £100 is the minimum required to maintain membership and voting rights in the society.
We suggest supporters consider their existing account terms and conditions (e.g. penalties for early withdrawals), shop around and consult best buy tables for a better deal e.g. ThisIsMoney, MoneyFacts.
By leaving just £100 in their Nationwide account, supporters will retain membership rights, including the ability to call, attend and vote at meetings under the society’s rules – provided Nationwide honours the contract already in place.
You may be concerned that moving money out of Nationwide will mean you forfeit any rights you have to ownership if the society demutualised. However:
- Nationwide’s board and management have stated that they are committed to the society remaining a mutual.
- If management did decide to demutualise, only members that belonged to the society before 3 November 1997 would benefit. Members that joined after that date would have their shares assigned to charity anyway.
It is regrettable that the campaign is now having to ask supporters to take this direct action that could harm the financial stability of the society. But with Nationwide failing to put forward a vote on the proposed takeover, or call a SGM to affect the same, this is the best way for members to show their displeasure at the contempt that the society has shown for their valid concerns.