Northern Rock's shareholders have begun a legal challenge against the Government to receive compensation for the shares lost when the bank was nationalised.
The UK Shareholders Association (UKSA) is hoping to get £5 per share for the bank, saying this was the value of shares at the time of nationalisation. The bank was originally nationalised with a clause saying shareholders would receive the value of the bank without the government loans it had obtained. However, since the bank was unlikely to have been a going concern without the support of taxpayers, the Government argued it was effectively worthless. The UKSA has the support of around 7,000 shareholders and has submitted an application for a legal review into the nationalisation of t...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
