Lloyds Shareholders Action Group – Registration Form and Appeal for Funds to Fight this Campaign   

The merger of Lloyds TSB and HBOS has destroyed shareholders wealth on an enormous scale, and the Government now has effective control of the company. The Lloyds Shareholders Action Group has been formed to look into these issues with a view to taking legal action to recover some compensation for shareholders. 

LloydsTSB used to be a safe if somewhat boring bank. It had a well diversified portfolio of assets and it paid a high dividend. It was therefore a favourite share for private investors and those investing for retirement income. HBOS was more reliant on the property sector, and was also substantially involved in commercial property lending.  

When HBOS got into difficulties, due partly due to the credit crunch and the difficulties in the UK housing market, it was a surprise when the idea of merging these companies was launched (in reality a takeover of HBOS by LloydsTSB). This proposal required the same "recapitalisation" of the merged company as was being imposed on other banks by the Government, so as to strengthen its balance sheet.  

Many LloydsTSB shareholders objected and told the directors of their views in no uncertain terms, but it was pushed through. HBOS shareholders were also unhappy because they thought their company was worth more than the offer. The result for both groups of shareholders has been an enormous destruction of value, and the cessation of dividends. In addition the latest "Asset Protection" proposals will result in the Government gaining majority control of the company. But LloydsTSB would not have had to raise additional capital from the Government if this deal had not been done. 

Legal Action Being Considered 

We have therefore set up a "Shareholder Action Group" to represent the interests of Lloyds Banking Group shareholders. Our objectives are to try and ensure some restoration of value to the original shareholders, to investigate some of the legal issues associated with this debacle and to pursue legal action where appropriate.  

Your Support Needed 

But we need your support to enable us to communicate with the approximately 3 million shareholders in this company. It will not be a small task to talk to so many shareholders but the UK Shareholders Association (UKSA) has much experience of running shareholder action groups. Also the legal issues are not simple and it may take us some time to identify and pursue any action, with significant costs in prospect.

Although UKSA management and the members of the Committee set up to run this campaign do not charge for their time or costs incurred in running this campaign, we do have considerable other expenses that also need to be covered. This comprises printing, postage, the cost of purchasing the company’s share register and other incidental and administrative expenses. In addition we may incur substantial legal costs. We are therefore asking all shareholders in Lloyds Banking Group (or its predecessors if you have sold your holding) to contribute to a fund for this purpose.  

Our objective is to raise at least £15 from every shareholder and more where those shareholders held considerable number of shares (after all those with more shares will benefit more if the legal action is successful). These subscriptions will help to cover the basic expenses that we have for administration and communications with shareholders.  The suggested contribution is 0.5p per share held, but please simply give as much as you can afford, with a minimum of £15. A table that gives some sample figures is shown below).

To make a donation you can do so by clicking on the following link to make a donation on-line: Donation, or you can print this page out and post it with a cheque. 

Name:      _________________________________________________________

Address:  _________________________________________________________

              _________________________________________________________

              _________________________________________________________

Postcode: ________________

Email Address : ____________________________________________________

(please write clearly in capitals)

Telephone (optional): ________________________________

Number of shares held _____________________

I enclose a cheque for £ ______________ made payable to the UK Shareholders’ Association as my donation to this campaign.

Please return this form together with a cheque for the amount being contributed to the following address:  UK Shareholders' Association Ltd, Chislehurst Business Centre, 1 Bromley Lane, Chislehurst, BR7 6LH.

Foreign shareholders or those who wish to pay directly into our bank account should contact UKSA to obtain our bank details.

The UK Shareholders' Association warrants that any contributions made in respect of this matter will be used solely to promote the interests of the shareholders of Lloyds Banking Group. If the committee set up to organise this campaign subsequently determines at some point that no further action is necessary, then any funds remaining will either be returned by UKSA to contributors pro-rata to their total contributions, or may be used for any charitable purpose to promote the interests of UK shareholders in general by UKSA. Money paid to UKSA for this campaign will be accounted for separately, and any expenses incurred likewise, and a statement of income and expenses will be supplied to contributors at appropriate points in time, but no less than annually. The UK Shareholders' Association (UKSA) is a “not for profit” company limited by guarantee – see www.uksa.org.uk/About.htm  for more information. The Lloyds Bank Shareholders Action Group is a group operating under the constitution of UKSA.

If you have any questions on this matter, then please call 020 8468 1027 (Int: +44 20 8468 1027)