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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Correspondence: 18/10/2002 - Letter from Alex Henney to Vanni Treves on Governance of the Society
18 October '02 - Letter from Alex Henney to Vanni Treves
38 Swains Lane
London
N6 6QR.
18th October, 2002.

Mr. Vanni Treves
Chairman
Equitable Life Assurance Society
c/o Macfarlanes
10 Norwich Street
London EC4.
T: 020 7831 9222
F: 020 7831 9607
vanni.treves@macfarlanes.com


Dear Mr. Treves,

Petition regarding governance

I draw your attention to the following quotation from the FSA's October "Progress Report: The Future Regulation of Insurance":-

"Consumer and investor confidence in the management of insurance firms has been affected by instances of mis-selling, most notably of personal pensions, and by high profile cases such as Equitable Life and Independent Insurance. These cases have highlighted, among other things, the need for effective corporate governance and systems and controls in both life and general insurers."

The Society states on its website: "The Board has established a sub committee to review the Articles of the Society. The Board will consider carefully the findings of the sub committee and the views of members (my italics). It will then put appropriate changes to an EGM. The convenient and cost-effective time to hold an EGM is at the next AGM. However, the Board will consider whether the proposals represent a pressing need, which would justify the cost and inconvenience to policyholders of holding an earlier meeting."

As you are aware, in May we sent a mailing to members which, among other things, invited policyholders to join EMAG and asked members to support EMAG's proposals to modernise the governance of the Society (I attach a copy of the form). We received 16,179 signed petitions, which the Society is welcome to inspect, and which we have coded electronically. I am sure you will agree that this is a significant number of members, representing about half of the number who voted at the AGM. In view of the support of so many members the Committee of EMAG has drafted the enclosed proposed changes to the Society's Constitution, which cover those aspects of it related to governance and to the provision of information to members. In line with the FSA's wish, our drafting provides for much more effective corporate governance than at present.

In view of the level of support of members we would be obliged if you would convene an EGM and put EMAG's proposals to a resolution.

Yours sincerely,


Alex Henney
Chairman, EMAG
c.c. EMAG Committee, Board members, Journalists