Standard Life 'with profits' policyholder members are to vote on the company's demutualisation in May or June of next year, with payouts for members expected to be between £500 and £1,000.
Around 2.4million eligible members who bought policies before 30th March last year, which mature after 18th October this year, will be contacted by Standard Life in the near future, to confirm policy and contact details to ensure they receive payouts if demutualisation is approved.
Most eligible members will receive free shares, although some will receive cash when, for example, they live overseas etc. The board needs 75% of the votes cast to be in favour of demutualisation for a flotation to proceed, but Standard Life have not put a minimum requirement in terms of turnout.
This means that only a small proportion of members could decide the future of the company.
Our view
Standard Life need to demutualise to allow the company to progress and have the ability to raise capital when needed. We believe this move will strenghthen Standard's position as a leading provider.