Report 369 Response to submissions on CP 210
Demutualisation approval procedure rules: Minimum member participation requirement (REP 369) sets out the key issues that arose out of submissions to Consultation Paper 210
Demutualisation approval procedure rules: Minimum member participation requirement (CP 210).
No one individual should in my opinion feel a need to apologise for their having received
demutualisation bonuses since, where they are paid out at all, then everyone is as morally entitled to receive one as anyone else.
In April, Standard Life asked members to back
demutualisation to help the company raise capital and realise their interest.
At that point new Standard members were asked to sign a waiver ruling them out of any windfall should the company pursue a
demutualisation.
Mr Burgess said it appeared
demutualisation could take place without immediate stock market flotation or trade sale, so members would receive a shareholding in an unquoted company.
Throughout both Ireland and the United Kingdom, management of Standard Life campaigned against
demutualisation in voting that went on up to last Friday, with the result set for Tuesday.
Mortgage shortfalls, possibly affecting as many as 530,000 Standard Life endowment policies, could be made up by
demutualisation gains.
The rating actions follow the successful completion of the
demutualisation process.
People can validate their membership either by filling in a form which was sent to members in October or by voting on the
demutualisation.
Standard Life, which employs 60 staff in Newcastle's Cross House, warned that
demutualisation would damage the company and vowed to fight the move if the petition was valid and sparks a special general meeting and a vote.
David Stonebanks, 64, handed in a petition from nearly 2000 members calling for a vote on
demutualisation.
His comments, at Standard Life's annual general meeting at the Edinburgh International Conference Centre, came amid snowballing demands from investors for
demutualisation.
