Standard Life will have to call a Extraordinary General Meeting (EGM) within the next three months I...
Standard Life will have to call a Extraordinary General Meeting (EGM) within the next three months IF David Stonebanks' resolution to demutualise the life insurer is legally valid, says the Edinburgh firm.
A spokeswoman at Standard Life confirmed a proposal from Standard Life policyholder David Stonebanks did hand in around 2,000 votes and a resolution to demutualise the firm - as he proposed he would last week.
However, officials are unable to safely say what the next move will be as each vote presented has to be checked to ensure the name listed is a Standard Life member, as well as assess whether the resolution submitted is legal, according to the mutual society's rules and regulations.
In order to argue for demutualisation, Stonebanks had to submit at least 1,000 member-backed votes to Standard Life and met the society's rules governing proposed resolutions.
Only if these requirements are met can the question then progress to policyholders at an EGM.
However, Stonebanks appears to have started on a bad footing as IFA responses so far indicate they may not back any plan to shake off the mutual's status unless it is in the interests of each individual client.
His response to such suggestions was that he would make a complaint to the FSA about any IFA which did not back his cause because, he argued, this would not be acting in the best interests of the client.
An IFAonline poll of over 100 advisers so far reveals at least 72% of IFAs would not back the action - Go to the 'Opinions' and 'Past Polls' page to view the current findings.
Initial evidence gathered from the financial services industry suggests that Stonebanks would have no grounds to make a complaint to the FSA as any complaint about an IFA must come from the client.
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