Bank turns down request for shareholder committee in favour of engagement with employees, customers and suppliers.
RBS. Photo: Elliott Brown, Flickr.
RBS has rejected calls to set up a shareholder committee as part of its corporate governance structures.
Small shareholder body ShareSoc reacted by vowing to fight the decision, and calling it "unreasonable obstruction of shareholder democracy".
ShareSoc chairman Mark Northway said: "It is disappointing that, instead of leading from the front on corporate governance, RBS have instead chosen to try to thwart this initiative.
"This behaviour by the directors of a company that is majority owned by the UK government underlines the broad reticence of UK boards to address the breakdown of the agency model and the rights of shareholders.
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