Rebel shareholders in beleaguered UK mortgage lender Northern Rock have been frustrated in their bid to gain a greater say in the future of the firm.
Investors failed to back in sufficient numbers three of the four resolutions put forward by its two biggest shareholders.
The successful resolution limits the board's ability to issue shares, although Northern Rock said this did not represent an 'additional material restriction' to a rescue.
The four proposals put forward by hedge funds SRM Global and RAB Capital restricted the board's ability to issue shares and sell assets. Northern Rock's board had warned the proposals could hinder a rescue of the ailing firm, which could be nationalised by the British government if a private sector rescue fails.
Northern Rock chairman Bryan Sanderson said the board would work 'tirelessly' to find a solution to the group's current difficulties but acknowledged the support that the rebel motions had attracted.
Northern Rock has been in crisis since soaring borrowing costs in the summer credit crunch forced it to seek a Bank of England bail-out in September, prompting the first run on a UK bank in nearly 150 years.
Mr Sanderson admitted after today's meeting that nationalisation was 'looming rather more than a few weeks ago', although he added that he was 'reasonably confident' of achieving a private-sector solution.
He is waiting for a crucial report from investment bank Goldman Sachs on possible financing options available to Northern Rock - which he called the 'missing piece of the jigsaw'.
Northern Rock's bosses said they were looking at self-help options should the proposals from a Virgin-led consortium and investment group Olivant not succeed, but claimed the bank would need financial support from the Bank of England for another two to three years if it was to continue on a stand-alone basis.
