ROYAL Bank of Scotland has snubbed a call by investors for it to appoint a shareholder committee in order to “improve corporate governance”.
A group of about 100 shareholders represented by ShareSoc, the UK Individual Shareholders Society, and the UK Shareholders’ Association last month submitted a resolution for the bank to appoint the committee. It wanted the resolution voted on at Edinburgh-based Royal Bank’s next general meeting.
The bank said after taking legal advice the proposed resolution calling for a narrower shareholder committee to be established appeared to be inconsistent with the law and its constitution.
RBS favours the wider stakeholder engagement proposed in the Government’s Green Paper o n corporate governance. This would involve suppliers, employees and shareholders.
Chairman, Howard Davies said: “Acknowledging past mistakes and recognising the part that RBS must play in reform, we continue to develop our culture and priorities. Having looked closely at how we can improve and build upon existing arrangements at board level, we believe that RBS would benefit from strengthening the voice of our employees, customers and wider stakeholders.”
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