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Affected Parties/Shareholders

Q1: What do you mean by Affected Parties? Back to top

A: By Affected Parties, we mean those parties who would have been affected by the Northern Rock plc Transfer Order 2008. These were:

•   Those who held ordinary, foundation or preference shares in Northern Rock plc
•   Those whose rights to receive shares in Northern Rock plc were extinguished by Article 4 of the Transfer Order
•   Those whose "consequential rights" were extinguished by Article 12 of the Transfer Order.

Q2: How many former shareholders did this valuation affect? Back to top

A: Northern Rock had over 190,000 shareholders. Many of these had nominee accounts, which means that their names are not on the share register.

Q3: Was the final value set by the Independent Valuer applicable to all classes of shareholders and Affected Parties? Back to top

A: The Independent Valuer’s final determination that no compensation was payable to former shareholders applied to all classes of shareholder.

Q4: Were there any parties who were affected by Article 12 of the Transfer Order? Back to top

A: In order that all those persons affected by Article 12 were aware of their right to be considered for compensation, the Independent Valuer published a series of public notices in the national and regional media asking anyone who believed they were affected by Article 12, to make themselves known to the Independent Valuer and submit evidence that showed they had been affected by Article 12 of the Transfer Order. While the Independent Valuer received a small number of responses to these notices, no-one could show that they had been affected by Article 12.

Q5: Will I get some money if and when the Government sells Northern Rock? Back to top

A: Any future sale of Northern Rock was outside the scope of the Northern Rock plc Compensation Scheme 2008, and was therefore beyond the Independent Valuer's remit.

Q6: Can I hold on to my shares in the hope that one day, when the company is once again privatized, the shares will recover? Back to top

A: All shares in Northern Rock were transferred to HM Treasury at the beginning of 22 February 2008 as a result of the Northern Rock plc Transfer Order 2008 coming into force.  This means that former shareholders no longer own their shares.

Q7: Northern Rock is in temporary public ownership, so at some point in the future shares in Northern Rock will again be issued or sold. Will I get my shares back then? Back to top

A: Northern Rock plc is in temporary public ownership.  The Independent Valuer cannot comment on what may happen to Northern Rock shares in the future.

Q8: Did the Independent Valuer come to this decision by himself? Back to top

A: The Independent Valuer reached his final determination independently. 

The Independent Valuer was assisted by Panmure Gordon & Co, who provided information on the banking, securities and financial assets market to enable him to assess the potential market value of Northern Rock’s assets.  Mayer Brown International LLP provided the Independent Valuer with legal advice as required.