Nationwide customer vows to fight on after failed attempt to join board

A Nationwide customer who mounted an unprecedented campaign to join the board of the building society has vowed to continue his fight for reform despite his bid being rejected by members, arguing that the vote exposed a democratic deficit at the heart of the mutual sector.

The customer, a retired accountant who gathered the 500 member nominations required to stand for election, secured approximately 18 percent of the vote in a contest that the board described as a decisive endorsement of its current strategy. But he argues that the result — in which the board's preferred candidates were elected with the support of a small fraction of the society's 16 million members — demonstrates that the mutual governance model is not working as intended.

Turnout in the election was approximately 4 percent, a figure that the challenger says is typical of building society elections and that makes a mockery of the claim that members control the organisation. "When 96 percent of members don't vote, you cannot claim a mandate," he said. "The board effectively elects itself, and that is not what mutuality is supposed to mean."

Nationwide has defended its governance, pointing out that all members are entitled to vote and that the society makes extensive efforts to encourage participation. A spokesperson said the election had been conducted fairly and in accordance with the society's rules.

The campaign, while unsuccessful, has drawn attention to the governance of building societies at a time when the mutual sector is under pressure to demonstrate that its alternative ownership model delivers better outcomes than the shareholder-owned banks. The challenger said he would continue to campaign for reforms, including lower nomination thresholds and independent oversight of elections.