More than 100 investors in Royal Bank of Scotland Group Plc are putting forward a resolution urging the lender to establish a shareholder committee aimed at improving corporate governance at the bank.
The shareholders are supported and coordinated by advisory groups ShareSoc and the UK Shareholders' Association, who will hand the resolution to RBS on Dec. 30. The organizations said RBS will now have to put the resolutions to a vote at its May 2017 annual general meeting.
ShareSoc Chairman Mark Northway said one of the objectives of the resolution is to prevent the recurrence of events that led to RBS' near-collapse in 2008, including concealing the true financial position of the company from investors and publishing a rights prospectus that covered up the problems it faced.
"Shareholders, including individuals, deserve a new approach; one with greater involvement and more effective input from them as ultimate owners," Northway added.
A representative for RBS, which is 72% owned by the U.K. government, said it has not yet received a final draft of the resolution but will closely look at it "to ensure that it complies with all corporate governance and listing guidelines," the Financial Times reported Dec. 30.