Lloyds' Kane can't bank on support

Published on Thursday 28 May 2009 09:43

THE head of the Scottish operations of Lloyds Banking Group is set to face opposition to his plans to stand for re-election.

Archie Kane, a key figure in the takeover of HBOS by Lloyds TSB, is standing for election for another term at next week's annual general meeting, alongside Lloyds chairman Sir Victor Blank and deputy chairman Lord Sandy Leitch.

But Manifest, the proxy voting agency which advises institutional investors, has warned there are "significant concerns" over the three directors' continued service.

It said that the company had failed to conduct an appropriate level of due diligence over the HBOS takeover, and the directors could be open to negligence suits.

Sir Victor has already said he will stand down by next summer. But Manifest said his decision may not be enough to satisfy shareholders.

The agency helps investors decide how to vote on company resolutions by highlighting departures from best practice. It produced a detailed report ahead of the meeting, in which it said: "We retain significant concerns about the continuation in office of those directors who sat on the board during September 2008 when the transaction was announced."

Lloyds chief executive Eric Daniels, who led the acquisition of HBOS, will not stand for re-election next week.