To: Northern Rock Small Shareholders' Group
Subject: Northern Rock EGM
You will by now have heard the outcome of the resolutions of the EGM. Shareholders voted two-to-one to suppport the largest shareholders -- but because of the vagaries of the rules, only one motion was formally approved. Undoubtedly, however, this represents a moral victory for us,
and the directors would be unwise to go against the spirit of the motions.
I was greatly encouraged by the meeting. The directors heard the authentic voice of the shareholders. The meeting was held in a frank but polite spirit and I'm sure that we have a renewed community of interest and of purpose between shareholders large and small, and the directors.
Comments made about the employees and the Northern Rock Foundation will have demonstrated to the impartial observer that we recognise we are all in this together. In particular, the addresses made by the heads of the two largest shareholders will have belied the abuse against "hedge
funds" -- they are clearly committed to the business and the future, and confirmed their wilingness to contribute to a rights issue. The chairman had a good touch in his opening remarks referring to having the second-most difficult job in Newcastle!
You will know that I had intended to vote against the election of the directors, but having persuaded them to speak about their commitment to the company, I decided to put my trust in them and vote to keep them.
There is a long way to go still, and we continue to be beset by political spin, but I am confident that the Chairman Bryan Sanderson will do his best to keep the company out of the hands of the government!
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