IPE To Consult Members On Demutualisaton

Sir Bob Reid, Chairman of the IPE today sent out a letter to Members asking them to comment on the possibility of demutualising the Exchange, without seeking outside investment. This would involve the separation of ownership from trading rights and the transformation of the IPE into a commercial organisation. In discussions with Sir Bob and chief executive Richard Ward over the last two months, Members have expressed continued concern over the IPE's corporate governance structure. At a Board meeting on 21 October Sir Bob identified the three broad alternatives that were open to the Exchange. These comprised the retention of the current structure; seeking to demutualise and obtain outside investors simultaneously; and finally to demutualise the Exchange without outside investment. The second of these options would be similar to the "plan B" arrangements discussed earlier this year, which did not secure the necessary 75% majority vote to come into effect. Sir Bob has asked Members to forward their comments to him by the end of next week and feedback will be presented to the next meeting of the IPE Board of Directors on 23 November. Sir Bob said "as any change to the structure of the IPE requires a 75% majority vote of approval from the Membership, I am determined to ensure that any proposal for change is capable of securing an overwhelming majority. The option of demutualisation without outside investors has been favoured by the Membership as a promising way forward. This stage is an important precursor to preparing a concrete proposal for the approval of the Board".