Edward Doogan a chartered accountant told policyholders he was standing for election because of Equitable's poor investment
Edward Doogan, a chartered accountant, told policyholders he was standing for election because of Equitable's poor investment performance. He also said the board was not representative of the society's membership. Of the 350 policyholders present at the time of voting, up to one-third were Equitable staff members. In total, 600 members attended the AGM at the Barbican Centre in London in contrast to previous years when the meeting only attracted around 50.The unusually large number of Equitable employees present became apparent when, during his presentation, Mr Doogan requested they stand up.Mr Doogan lost the vote by a majority of two to one, gaining 104 votes with 222 against him. In the proxy vote 132,599 of the society's 600,000 members elected to put him on the board.Although he failed to get on to the board Mr Doogan confirmed he would be seeking reelection and sources indicated he had high-level support within Equitable. After the meeting a number of board members praised him for his stance.Referring to the vote Mr Doogan, 45, said: "I couldn't say it was rigged but I believe my question about how many staff were here was relevant."The AGM also provided a platform for members furious with Equitable's action over guaranteed annuity policies to vent their anger.Equitable, the UK's oldest life assurer founded in 1762, is going to the High Court on 5 July when it will ask if it can lower bonus payments for policyholders who choose to exercise annuity guarantees.There are around 100,000 guaranteed annuity holders who bought their policies between 1956 and 1988 when annuity rates were much higher.Equitable has made a pounds 200m provision for annuity guarantees in its 1998 accounts but policyholders' action groups estimate the cost at pounds 1bn.
One policyholder, Michael Simmons, said the issue was "a poison pill" and told board members they were "sitting around their green baize table playing strip poker with my final bonus".Professor Tony Eccles, who described the board's presentation as "sophisticated drivel", said the group was in danger of joining the list of damaged companies. "If you persist with this policy, people will desert Equitable," he said.Mr Doogan said he was not protesting about annuity guarantees.. Greenalls makes tracks for hotels GREENALLS, THE struggling pubs and hotels group, is to open seven of its budget price Premier Lodge hotels on the sites of Tube stations. The deal with London Underground will see three hotels open early next year at Hounslow West, Cockfosters, Hillingdon and Northolt. The hotels will cost around pounds 14m to build and create 200 jobs.
The announcement came as Greenalls reported a sharp fall in half-year profits, reviving speculation that the company will soon become a bid target.. Outlook: Eco parallels YOUR STARTER for 10. Which economy does the following most accurately describe? Seven years of uninterrupted, low inflation growth has ensured that employment is at record levels, with unemployment falling close to a 30- year low. The tight jobs market is beginning, perhaps, to signal inflationary pressures in the pipeline. On the other hand, the currency has appreciated significantly, keeping inflation low for now, the trade balance has plummeted into the red and manufacturing industry is having to cut jobs.Why the US, silly.
But as Eddie George, Governor of the Bank of England, said in a speech earlier this week, it could equally well be his own description of the British economy.There is one stark contrast, however. The balance of opinion on the Federal Reserve is shifting towards an increase in interest rates. The Monetary Policy Committee is as close to divided down the middle as nine people can be, with a majority of just one in favour of leaving rates unchanged rather than reducing them. The debate makes it clear that the committee has a bias towards loosening if the exchange rate stays high.This is topsy turvy. Actually, rates ought to be more likely to go up, on balance, in the UK. The shameful truth is that the British economy has displayed far fewer signs than the US of the productivity gains that might make possible a persistence of the magic combination of low unemployment and low inflation.While US productivity gains have been galloping ahead at an annual rate of more than 4 per cent in recent quarters, and above its long term average through the long expansion, UK productivity growth has been below trend and slowing.