Nationwide Faces Criticism Over Virgin Money Deal Amid AGM Controversy

Nationwide, the UK’s largest building society, is facing backlash for its decision to ban members from attending the upcoming annual general meeting in person. This move comes amidst criticism over the mutual’s £2.9 billion takeover of rival lender Virgin Money, a deal that has sparked concern among shareholders.

The decision to hold the AGM exclusively online has raised eyebrows among members who feel they should have the opportunity to voice their concerns in person. John Dawson, a retired baker from Preston, expressed his frustration by voting against every resolution in protest after discovering the meeting would be online-only.

The takeover of Virgin Money, which has been approved by shareholders, is set to create Britain’s second-largest savings and loans group after Lloyds. However, the deal still awaits regulatory approval and could face challenges if a new bank tax is introduced after the upcoming General Election.

Campaigners have gathered over 5,000 signatures in a petition demanding that Nationwide members be allowed to vote on the Virgin Money deal. They argue that the mutual’s refusal sets a dangerous precedent, turning it into an autocracy rather than the democracy it is supposed to be.

Nationwide’s decision to hold a digital-only AGM is not unique, as other companies have faced criticism for similar moves. However, the backlash from members and campaigners highlights the importance of transparency and accountability in corporate decision-making.

As the controversy surrounding the Virgin Money deal continues to unfold, Nationwide will need to address the concerns of its members and ensure that their voices are heard in the decision-making process.