SATURDAY 20TH APRIL 2024
FOR IMMEDIATE RELEASE
Nationwide say call for a Special General Meeting “not valid”: member vote campaign fights on with over 3,000 supporters
The Nationwide Building Society has rejected a request for a Special General Meeting of the society, as supported by over 3,000 supporters, under the society’s rules. The campaign requested the SGM to pass a resolution that the takeover of Virgin Money can only proceed if approved by a member vote. Meanwhile the campaign has added over 1,000 signatories in just 24 hours – and has published the full correspondence between the society and the campaign.
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 S92A of the Building Society Act (1986).
Nationwide’s board and management have thus far refused to put forward a vote to the society’s members or disclose their reasons for circumventing the law.
Following the Nationwide reply to the request for a SGM received Thursday, the campaign has immediately written back to Nationwide, again asking for a SGM – or for a clear, detailed explanation as to why this cannot be called as per the society’s own rules. It has also again repeated demands for the society to be transparent as to the legal opinion that it is relying on to deny members a vote.
In the interests of transparency, and given significant membership and press interest in the evolving story, especially given a similar approach taken by the Coventry Building Society for its proposed takeover of the Co-operative Bank (also denying their members a vote), the campaign has taken the decision to publish email correspondence between the campaign and Nationwide’s society secretary.
Campaign organiser, Mikael Armstrong, commented:
“As you can see from the correspondence published by the campaign today, it remains extremely disappointing and deeply troubling that Nationwide continues to ignore the valid concerns and legitimate requests of its members.
“The Nationwide board is hiding behind hypothetical members’ interests and potential, unproven improvements to member benefits without specifying in detail what these would be, how they would be achieved, and the underlying assumptions and potential risks. This is simply unacceptable.
“Continuing to paint the proposed deal in oversimplified, upbeat headlines regarding potential benefits that lack substance is inappropriate for a potential transaction of this magnitude and significance. It is also highly patronising and disrespectful to the society’s membership.
“This lightweight approach to member communication and engagement – combined with a clear board and management desire to rush a deal through, without proper consultation, and without any presentation or discussion of the costs and risks – only raises multiple red flags and brings into question the fitness and probity of management, as well as the level of governance and oversight exercised by the board.”
“While Nationwide continues to treat its members with contempt and ignores their valid concerns and questions, members will continue to withdraw funds from the society in protest, as suggested by the campaign.”
ENDS
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NOTES TO EDITORS
PLEASE SEE APPENDICES INCLUDED AT END OF PRESS RELEASE FOR A HISTORY OF CORRESPONDENCE BETWEEN THE CAMPAIGN AND NATIONWIDE BUILDING SOCIETY.
You can contact the campaign at NWVMvote@gmail.com
USEFUL LINKS
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Campaign website –
Change.org petition – https://www.change.org/p/give-nationwide-members-a-say-on-the-purchase-of-virgin-money
Campaign interpretation of Section 92A of the Building Society Act (1986)
Nationwide Memorandum and [membership] Rules
There is something else the Board is spending money on. See the Remuneration Report – it is a masterpiece in tautology (logic ) in that regardless of the variables the outcome is the same, licence to award whatever bonuses the Board wishes.
Indeed, thanks Gerard. Perhaps it’s time to replace the board by voting them off at the AGM.