View more on these topics

Lloyds chiefs set for tough re-election

Lloyds chiefs will have to face down growing concerns from shareholders at next week’s Lloyds annual general meeting if they are to seek re-election.

Lloyds Banking Group chairman Sir Victor Blank, group executive director Archie Kane and deputy chairman Sandy Leitch are all up for re-election to the Lloyds board at its 2009 AGM on June 5, although Blank recently announced that he would step down ahead of the 2010 AGM.

But Manifest, a proxy voting service, has told clients that it has concerns about the chiefs in the wake of the HBOS buy out and warns that Blank’s resignation may not be enough to satisfy shareholder.

It says the admission by Lloyds chief executive Eric Daniels to a Treasury select committee that the bank did not do as much due diligence as it would have liked on HBOS calls the legitimacy of the directors into question.

Manifest told Lloyds voters: “Irrespective of the political pressures surrounding the transaction at the time, Daniels’ admission raises fundamental questions in our mind. It’s a given in business that directors must take risks in an attempt to earn profits for the company, however, the failure to conduct the typical level of due diligence for a transaction of this nature, publicly acknowledged, may leave the directors open to negligence suits.”

It adds: “Manifest has significant concerns about the continued service of those directors who sat on the board during September 2008 when the HBOS deal was proposed and subsequently transacted.

“Resolutions to discharge directors from their liability are common in many other European countries, but are not required in the UK. Were such a resolution to be required in the UK, we doubt that the Company would win such a vote in these circumstances.”


Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm