RBS defends unminuted dinners

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Royal Bank of Scotland has been forced to defend its practice of holding unminuted dinners before board meetings during the financial crisis.

The Daily Telegraph reports that the bank is locked in a legal dispute with investors who claim they were misled into taking part in its $15.11bn cash call just months before the bank, which was helmed by disgraced former chief executive Fred Goodwin, succumbed to a $57.9bn bailout.

Three groups of shareholders settled with the state-backed bank last week but two other claimants, including the RBS Shareholder Action Group, which represents 27,000 retail investors, rejected the $1bn offer.

It means the bank and Goodwin still face the prospect of going to court in March.

As part of their claim, the investors alleged that RBS’s board, which at the time was led by chairman Tom McKillop, “typically met the evening before a board meeting and discussed and agreed agenda items over an unminuted dinner.”

RBS has admitted that gatherings were held and that minutes were not kept. However, in its defence documents, the bank “denied that agenda items were agreed at those dinners”.

To access the complete Daily Telegraph article hit the link below

RBS defends its unminuted dinners in financial crisis

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