With the £2.9bn acquisition having big sway over its future, owners should have a say, but democractic governance is blocked
Should the members of Nationwide be allowed to vote on their building society’s £2.9bn acquisition of Virgin Money? Well, of course they should. The concept of mutual ownership can be fuzzy around the edges, but a deal that will expand the society’s assets by about a third is precisely the sort of transaction where the members should have the final say.
Indeed, you’d hope the Nationwide’s board would see the sense of checking that the owners are up for the adventure. The Virgin deal is more than an add-on (even before one adds to the headline price the £250m that Sir Richard Branson will get as an exit fee for the brand licence). It is not an everyday piece of business. The cries of outrage about the lack of a vote by members are understandable.
