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Banking: Royal Bank of Scotland

Volume 716: debated on Tuesday 5 January 2010

Question

Asked by

To ask Her Majesty's Government whether they will exercise their rights as majority shareholders to remove the board members of Royal Bank of Scotland and replace them with new nominees. [HL919]

The Government’s shareholdings in the Royal Bank of Scotland (RBS) are managed on a commercial and arm's-length basis by UK Financial Investments Ltd (UKFI). UKFI’s objective is to protect and create value for the taxpayer as shareholder, with due regard to the maintenance of financial stability, and to act in a way that promotes competition.

Under UK company law, the responsibility of boards is to act in the interests of all shareholders, and UKFI will robustly hold the boards of its investee companies to account in this regard.