For more information about PIRC or to arrange a meeting, contact Janice Hayward, or call us on 0207 247 2323.
June 18 2008
Northern Rock investors should withhold their support from proposals aimed at preventing a firesale of the stricken mortgage bank's assets, corporate governance lobby Pensions and Investments Research Consultants (PIRC) said.
PIRC advised Northern Rock investors to abstain from voting on a proposal to prevent the bank's board from selling more than 5 pct of its assets without majority shareholder approval, saying it is 'not persuaded' that existing takeover rules are inadequate.
The group also said shareholders should abstain from voting on a separate proposal to limit new share issues to 5 pct of the existing share capital for the next five years, on the grounds that the proposed ceiling would be 'a restraint on the board's power to act in the best interest of all shareholders'.