Small share holder in Northern Rock

Archibald535

Hi all, newbie here. I am, like countless others, a small shareholder in NorthernRock (500 Shares). Since the nationalisation, I have heard nothing. Do I take it I have lost everything?

Cheers, Archy.

caveat_emptor

Not necessarily. There is a NR shareholders organisation that is fighting the government for a fair deal. You should have received a letter asking for support from shareholders.

bristolleedsfan

Government are finding it hard to find a company that is willing to put a value on the shares. :j

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/05/28/cnrock128.xml

News update feed here :

http://www.newsnow.co.uk/h/Business+&+Finance/Industry+Sectors/Banking/Banks/Northern+Rock

jd87

Hi. I'm in the same situation as the OP. I bought my shares online using NatWest Stockbrokers. I haven't heard anything from anyone since the nationalisation. I signed up to the mailing list of the Northern Rock action group (the group of shareholders fighting) so I am on their mailing list. But apart from that I have no idea what's going on.

My main concern is the way I bought the shares. Because I bought them through an online stockbroker, I don't have any certificates or anything by way of hard evidence that I ever had the shares. Should I contact NatWest Stockbrokers and ask them for certificates or something?

ChrisRad

Yep, I'm in excatly the same boat - bought the shares online and whilst I might be able to dig out some proof of purchase I don't think there's going to be anything/much.

I know there are discussions going on regarding valuation of the shares but realistically am I ever goign to receive any cash or is it all gone?

Thanks

earlgrey_3

Your holding would have been registered with the registrars, Capita, and they should be able to confirm your interest. See: http://companyinfo.northernrock.co.uk/shareholders/

Whether you ever receive any cash will be a political decision that reflects public sentiment. While some see it as small investors unfairly carrying the can, others, including the wackier characters on this board, see anyone with small savings to invest as wicked capitalists who deserve nothing.

ChrisRad

earlgrey wrote: »

Your holding would have been registered with the registrars, Capita, and they should be able to confirm your interest. See: http://companyinfo.northernrock.co.uk/shareholders/ quote]

Thanks earlgrey

http://companyinfo.northernrock.co.uk/shareholders/ doesn't even work for me - seems ominous!

So, quite simply I could end up with nothing at all - is there any suggetsion/deadline for when a decision on any reimbursement will be made?

Oblivion

All shares in the company were of course transferred to The Treasury under the provisions of Northern Rock plc Transfer Order 2008.

In their February statement, Northern Rock said ...

"Compensation Arrangements

Shareholders who held shares in the Company immediately before they were transferred by the Transfer Order, persons whose rights to receive or subscribe for shares in the Company were extinguished by the Transfer Order and persons whose contractual rights have been modified as a result of the Transfer Order shall each be entitled to compensation.
A draft of the Northern Rock plc Compensation Scheme Order 2008 (the Compensation Order), to be made pursuant to the Banking (Special Provisions) Act 2008, was laid before Parliament today and is available from the Treasury’s website at https://www.hm-treasury.gov.uk. The Compensation Order is expected to come into force shortly.
The determination of such compensation shall be made by an independent valuer appointed by the Treasury. In determining compensation, the valuer must assume that all financial assistance provided by the Bank of England or Treasury has been withdrawn and no such assistance would be provided in
the future. The valuer must also assume that the Company is unable to continue as a going concern and is in administration.
Further announcements relating to the Compensation Order will be made by the Treasury in due course"

As someone else has said, the present stumbling block seems to be in ascertaining a valuation.

For those who have said they have little or no proof of their share ownership, NR has stated that a list of those who held shares immediately prior to the transfer is being maintained. You would do well to write to the Registrars to ensure your details are on the list.

The Registrar is Capita Registrars, Northern House, Woodsome Park, Fenay Bridge, Huddersfield, HD8 0LA.
email: [EMAIL="northernrock@capitaregistrars.com"]northernrock@capitaregistrars.com[/EMAIL]
Tel: 0871 664 0340 (10p per minute).

Dave.

ChrisRad

Thanks oblivion.

Guess it's just time to wait and see what valuation is put on the shares, not a lot I wouldn't imagine unfortunately.

I will get in touch with the registrar to check things out...

dunstonh

While some see it as small investors unfairly carrying the can, others, including the wackier characters on this board, see anyone with small savings to invest as wicked capitalists who deserve nothing.

I guess that makes me whacky then. If you own shares you have to take the negatives as well as the positives. You cant just have it all your own way.

Owning single company shares is high risk. Always has been. Why should the taxpayer subsidise shareholders beyond more than is appropriate, if any?

ChrisRad

dunstonh wrote: »

I guess that makes me whacky then. If you own shares you have to take the negatives as well as the positives. You cant just have it all your own way.

Owning single company shares is high risk. Always has been. Why should the taxpayer subsidise shareholders beyond more than is appropriate, if any?

Fair comment but as a financial advisor I'm sure you'll understand that whilst I do appreciate the risk of buying shares it's not unreasonable to want to know the likely outcome of this rather irregular occurance.