EMAG

The independent action group for current and ex Equitable Life policyholders, funded by contributions.

Equitable Members Action Group

Equitable Members Action Group Limited, a company limited by guarantee, number 5471535 registered in the UK

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Press Releases: 12/05/2004 - EMAG urges members to vote 12 May

12 May '04 - Press Release: EMAG urges members to vote 12 May

Members of Equitable must post their votes THIS week on the Equitable Life's first member resolution in living memory and EMAG is calling on them to vote FOR its resolution. In the ghastly last five years at Equitable, never more than 10% of members have bothered to exercise their votes and, of those that did, a high proportion left their votes to the discretion of the chairman.

Paul Braithwaite, general secretary of EMAG commented:
"If members don't bother to vote and blindly trust in the board then, arguably, they get what they deserve. What has happened to the 50,000 with profits annuitants has proved that trust was misplaced. Right now, EMAG's quest for government compensation is at last on a roll and the board is out of step. We urge members to dig out the voting pack this week and send the board a message of support for EMAG."

More than 1,000 members signed EMAG's ordinary resolution requisition for the Society to fund EMAG's continuing campaign for government compensation. The board threw in the towel on holding the government to account in January, just before Penrose's report was published, saying policyholders had a better chance of success. The board's only remaining plank is to recommend pressure on the Parliamentary Ombudsman (PO) to conduct a second study. EMAG points out that this avenue is only open today because of its lengthy legal campaign to overturn the first PO report's findings.

EMAG has proposed to the board half a dozen times in the last six months that EMAG's committee and Equitable's non-executives meet to discuss the PO, paths to Europe and the pursuit of government compensation - but every olive branch has been rebuffed. The most recent, requesting financial help towards the legal costs of the judicial review of the PO's report on policyholders' behalf has been summarily rejected out of hand and the board has published its strong opposition and sought to slur EMAG's sound intentions.

EMAG's chairman, Alex Henney:
"When Vanni Treves was parachuted in as chairman three years ago he promised transparency and said there was: "no need for ginger groups". Neither has proved to be the case. The fact is that EMAG is the only realistic vehicle to press home the case for government compensation through Europe, but we need the funding which Vanni Treves is determined to deny. The £2m we're seeking is but a tiny fraction of the £50m or so that the board has spent on lawyers in the last three years. By his behaviour, Vanni Treves appears to be acting as placeman for the government and not putting policyholders' interests first."

Notes for editors:

  1. For EMAG's most recent letter to Vanni Treves, see: http://www.emag.org.uk/index.htm?correspondence/EMAG_to_VTreves_05052004.html~content
  2. The Equitable Life AGM is on Wednesday 19th May in London.
  3. The voting pack contains an extensive eight-page booklet supporting the board's strong recommendation to vote against EMAG's resolution which displays a regrettable lack of objectivity.
  4. EMAG has been around a lot longer than Vanni Treves. It was formed in August 2000. Unlike other Equitable groups it has always sought to represent ALL policyholder classes and it has never encouraged policyholders to sue the Society.
  5. When challenged by EMAG on the aspersions made the board refused to divulge either the full legal opinion or the brief, citing legal privilege - which can of course be waived at a client's discretion.