Standard Life faces conversion vote

By DARREN BEHAR
Updated:

 

A group of Standard Life members is mounting a second conversion attempt on the insurer in a bid to release windfalls up to £6,000 for 2.3m policyholders.

The Standard Life Members Action Group (SLMAG), which is headed by Monaco-based businessman Fred Woollard, is renewing its campaign to persuade the 175-year-old insurance company to shed its mutual status.

The latest initiative follows Standard Life's rejection of the group's original demutualisation proposal, made in February.

There could be a special general meeting to consider the latest attempt within four months if the resolutions are accepted by Standard Life.

After taking legal advice the group has now come back with five resolutions which it is planning to submit to the Standard Life board.

The first calls for an amendment to the rules to allow Standard Life members to give directions to the Board.

At the moment members are not allowed to give directions to the Board and this was the stumbling block on which the original conversion attempt failed.

The second resolution calls for the Board to demutualise and convert to a limited company.

The other resolutions recommend that a slice of any windfall shares created by a conversion should go both to the mutual's 12,000 staff and to a charity - the Standard Life Anniversary Appeal.

SLMAG has calculated that if Standard Life converts it could trigger windfalls averaging £5,000 to £6,000 per policyholder.

Fred Woollard said: 'We have spent a considerable amount of time and money on this proposal.

'Standard Life has said that if it receives a valid resolution then it will be put to the vote. We hope that Standard Life will honour its word.'

Mr Woollard hopes to present the resolutions, backed by the required number of 50 signatures, to Standard Life within the next week.

He said: 'I am going to be in Edinburgh next Tuesday for the Standard Life Annual General Meeting and I hope to be able to present it to the society then, though it would be too late to be considered at the AGM.'

A Standard Life spokesman said: 'We are aware of the new developments but we have not yet received any new resolutions and therefore cannot comment at this stage.'

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