news.scotsman.com/uk/Foundation-head-determined--to.578 -
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Published on: 11/3/2009
Last Visited: 11/3/2009
Mary Craig, chief executive of Lloyds TSB Foundation for Scotland, demanded a share of monies raised in the second rights issue, expected to be announced this week.
Ms Craig said the foundation's lawyers have said that, as a shareholder, it shoul
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d have been included in the May rights issue.
"This money and that which would come from the second rights issue would be a crucial lifeline until we reach a settlement with the bank," she said.
Ms Craig said that the foundation, which has 15.3 million shares, had written more than 30 letters to the bank, majority-owned by the taxpayer, asking why it had been excluded from the initial rights issue.
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Ms Craig said the dispute over the rights issue centred around whether the foundation - which holds "limited voting shares" as defined in its articles of association determining how a company is governed - should be treated the same as ordinary share holders.
"Our legal adviser have said that we should have been treated in the same way as ordinary shareholders," Ms Craig said.
The foundation has been locked in a bitter dispute with the bank over plans to reduce funding to the foundation.
Ms Craig has said the foundation - which has distributed more than 12,000 awards worth about £84m to community projects across Scotland - could lose at least £6m a year, leading to a number of projects being forced to close.