After David Stonebanks's recent attempt to force Standard Life to hold an Extraordinary General Meeting on the issue of demutualisation failed, the carpetbagger is back again.
Mr Stonebanks has told Standard Life that he will not force them into an Extraordinary General Meeting again on the issue of demutualisation, if they will look at and approve his resolutions for it in advance.
If Standard Life is prepared to approve the resolutions from Mr Stonebanks, he is prepared to wait until the insurers scheduled Annual General Meeting in April 2004.
Standard Life apparently has a board meeting at the end of August 2003 and Mr Stonebanks's proposals will be put to the board.
Our View:
Mr Stonebanks obviously believes that Standard Life would be better off as a PLC and owned by shareholders, rather than being a mutual and owned by policyholders.
When looking at the merits of demutualisation you would need to have very detailed information about Standard Life to be able to compare both avenues. However, the majority of people would not be privy to this information, making the decision on which way to vote very difficult.
Standard Life has always shouted the benefits of remaining mutual and this is continuing. What policyholders need to be aware of is that even if you get a cash or shares windfall for being a with profits policyholder, what will happen to the company in the future?
We do not believe the decision is that simple and would suggest that policyholders should not be blinkered by a cash payout.