Building Societies Association

Feature

Members have their say

Contact: Andrew Gall Date: 13 Sep 2007

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Building societies continued to give their members a greater say in the way they are run in 2007.

Turnout

Turnout at building societies' AGMs has improved significantly in recent years. This year over 2.8 million members cast their vote. Total turnout at the 60 societies was 18.0%, compared to 17.1% in 2006, and 14.2% in 2005.

This was boosted by the numbers voting at the Portman's AGM, which also held a resolution on its proposed merger with Nationwide. Excluding this result meant that turnout was 16.2%, which although slightly down on last year's figure was greater than in previous years.

In addition, the average figure hides the fact that nearly two thirds of societies increased the percentage turnout at their AGMs this year, where a comparison could be made.

Voting

The percentages of votes in favour also remained at the high levels set last year.

In the vote on directors' remuneration, on average 94.0% were in favour, compared to 93.7% last year.

The average vote in favour of the election of directors was down slightly at 96.3% compared to 96.5% in 2006.

In the vote to approve the annual report and accounts, on average 98.8% were in favour, the same as in 2006, and the vote to reappoint the auditors was also unchanged at 97.8%.

Corporate governance vitally important to societies

Societies are putting in greater efforts to encourage members to vote. For example, over a quarter offered online voting this year, more than ever before.

As building societies are owned by their customers, high standards of corporate governance are vital to allow members to voice their opinions on how the society is run. The results from this year's AGMs suggest that building society members are continuing to seize this opportunity.