Call for a Special General Meeting (SGM)
For years, Nationwide has described itself as “Member owned.”
But ownership only has meaning if Members have meaningful rights.
It’s Time to Reclaim Member Democracy and reset the balance of power between Nationwide’s Board and its Member-owners
💡 Did you know?
Parliament has already given Members of every building society the legal right to require a Special General Meeting. With the support of just 500 qualified Members, changes to Nationwide’s rules can be put before the Membership for a vote – in advance of next year’s Annual General Meeting.
Nationwide is owned by its Members. At least, that’s the principle.
But ownership only has meaning if Members have real constitutional rights and a genuine voice in how the Society is governed.
Today, too many of the decisions that shape the future of Britain’s largest building society are effectively made by the Board alone, and we — as Member owners of a democratically governed mutual — don’t get a say or a vote (e.g. the acquisition of Virgin Money, Fairer Share payments that are only distributed to a minority of the Membership).
But this can, and should, change.
As the Member owners, we already have the power
Under the Building Societies Act 1986, 500 qualified Members can require their building society to hold a Special General Meeting. That statutory right is reflected in Nationwide Building Society’s own Rules (Rule 14). See more regarding the legal position here: The Legal Right of Building Society Members to Call a Special General Meeting
In other words, this isn’t a favour the Board can choose to grant. It’s a legal right that belongs to Members.
A Special General Meeting gives Members the opportunity to debate and vote on constitutional changes to the Society’s Rules.
Those Rules can only be amended if Members approve a Special Resolution with at least a 75% majority of votes cast.
A once in a generation opportunity
I believe Nationwide has the opportunity to become the most democratically governed major financial institution in Britain.
That’s why I want to bring forward a package of constitutional reforms that would give Members stronger rights and greater accountability.
My proposals include:
1. Fair and equitable Board elections, with equal treatment of every candidate - in common with modern electoral standards;
2. Guaranteeing at least two Member Nominated Directors on the Board 0 in common with the legal provision for large pension schemes and other large mutual organisations;
3. Ending 'bundled blind voting' and other forms of bloc voting (e.g. the Quick Vote system) so every candidate and every resolution is considered separately - in common with the law prohibiting the use in trade union execuitve elections ;
4. Introducing binding Member votes on executive remuneration - in common with the law regarding large shareholder owned and listed companies;
5. Restoring hybrid Annual General Meetings, allowing Members to attend in person or online - in keeping with practices elsewhere, and the legal requirements to hold an AGM at a "place";
6. Publishing every AGM question submitted by Members, together with the Society's response or an explanation where no response is provided - in keeping with best practice at other institutions;
7. Giving Members a meaningful vote on major strategic decisions involving exceptional, large discretionary capital commitments, such as major acquisitions or significant Member distributions - in keeping with the spirit of the law (e.g. s92A of the Building Societies Act 1986).#1-6 of my proposals above closely reflect governance reforms recently proposed in Parliament for all UK building societies. #7 would go further by giving Members a greater say over decisions that fundamentally shape the future of the Society.
The deposit requirement doesn’t stop Member democracy
The Building Societies Act allows societies to require a deposit of up to £50 for each requisitioning Member before a Special General Meeting is called.
To remove any financial barrier to participation, I am prepared to provide the entire deposit myself (500 x £50 = £25,000).
If 500 qualified Members support calling a Special General Meeting, I will ensure the necessary deposit is lodged.
Supporting this campaign will not require you to contribute £50. What I need is your support. You need to be a qualified two-year member to support the call for SGM – the same definition as that used to nominate a Member Nominated Candidates for Election to the Board.
You are a qualified two-year member if you are over 18 years old, and for the last 2 years:
- Held £200 or more continuously in a Nationwide savings or current account, OR
- Borrowed £200 or more continuously via a Nationwide mortgage
Register your support
Calling a Special General Meeting will only be possible if enough qualified Members are prepared to stand together.
If you believe Nationwide should strengthen Member democracy, improve accountability and give its Members a genuine voice in the Society’s future, please register your support today.
Join my email list and I’ll keep you informed as the campaign develops. If and when we reach the point of formally requisitioning a Special General Meeting, you’ll be among the first to know how you can help make history.
Together, we can build a stronger Nationwide by giving more power back to the people who own it: its Members.