Northern Rock rebels fail to influence bank's future

Rebel shareholders in beleaguered British mortgage lender Northern Rock were today frustrated in their bid to gain a greater say in the future of the firm.

Investors failed to back in sufficient numbers three of the four resolutions put forward by its two biggest shareholders.

The successful resolution limits the board’s ability to issue shares, although Northern Rock said this did not represent an “additional material restriction” to a rescue.

The four proposals put forward by hedge funds SRM Global and RAB Capital restricted the board’s ability to issue shares and sell assets.

Northern Rock’s board had warned the proposals could hinder a rescue of the ailing firm, which is set to be nationalised by the British government if a private sector rescue fails.