Disgruntled members of mutual LV are calling for more members of the board to be cleared out following the collapse of its proposed takeover by private equity shark Bain.
Chairman Alan Cook and chief executive Mark Hartigan departed after members voted against the deal last year. They have been replaced by Simon Moore and David Hynam.
But some members want several non-executive directors (NEDs) who supported the Bain takeover replaced by people more committed to the mutual model.
Unrest: Some members want several non-executive directors who supported the takeover replaced by people more committed to the mutual model
Those targeted include Natalie Ceeney and Suzy Neubert – NEDs who were due to join the board of a new company if LV had been bought by Bain.
Meanwhile, existing NEDs Seamus Creedon, Colin Ledlie and Susan McInnes had all been at LV when the takeover swoop was unanimously backed by the board.
‘I’m finding it difficult to believe that… the new board will really be 100 per cent committed to long-term mutuality,’ said LV member Clarissa Johnson.
She added: ‘I do wish that among the list… there could have been one or two other new people with the right experience, plus a proven commitment to mutuality.’
Johnson said it was time for some ‘new blood’ at the board level.
Calls for a clearout followed LV’s annual general meeting earlier this month when Hynam faced his first grilling from members.
MPs are seeking to pass new laws to prevent mutuals from being snapped up by private equity firms and milked for cash.
The Co-operatives, Mutuals and Friendly Societies Bill has been tabled by Labour MP Sir Mark Hendrick.
