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Private investors in stricken bank Northern Rock (NRK) are being urged to support resolutions proposed by hedge funds SRM Global Fund and RAB Special Situations at next Tuesday’s (15 January) EGM.

SRM and RAB have used their combined 18% holding to demand the meeting where they will put forward resolutions which, if passed, could ensure better protection for all investors, big and small.

Roger Lawson, spokesman for the Northern Rock Shareholder Action Group (NRSAG), says: ‘Their resolutions ensure you will have a vote on any proposed major changes to the business which might affect the value of your shares.’

NRSAG, which has 4,000 members, is representing the estimated 20,000-plus larger private shareholders in Northern Rock (those which hold more than 1,000 shares each).

A separate group – Northern Rock Small Shareholders Group (NRSSG) – claims to speak on behalf of the 100,000 smaller (1,000 shares or less) private investors in the bank.

NRSSG, which has Metropolitan Police commissioner John Stevens as its president, backs the resolutions. Spokesman Robin Ashby, says: ‘The things they [SRM and RAB] are attempting to do very much meet the objectives we set as a campaign group.’

Both NRSAG and NRSSG are against Virgin’s bid proposal – which would be massively dilutive for existing shareholders, including the hedge funds – and are in favour of rival bidder Olivant.

For more details about the EGM go to www.uksa.org.uk/NorthernRock.htm