Private investors are supporting calls for Northern Rock (NRK) to put an asset disposal to a shareholder vote. Two of the bank’s largest shareholders – owning a combined 13% – requisitioned an EGM last week.

At the EGM they propose putting forward a resolution requiring a change in Northern Rock’s articles of association. This would stipulate any disposal of more than 5% of the company’s assets be put to a vote.

Their concern is that Northern Rock’s assets will be sold off cheaply and is one shared by the bank’s tens of thousands of private investors too. Roger Lawson, communications director at the UK Shareholders’ Association (UKSA), says: ‘We believe it is important that shareholders have a say in the outcome of what happens to their company.’

Lawson says the group ‘fully supports’ the EGM requisition which has been made by hedge funds SRM Global Fund and RAB Special Situations, which own 6.4% and 6.7% of the bank respectively. You need 10% to requisition an EGM.

The sale of Northern Rock – which this week revealed Virgin as its preferred bidder – has raised concerns among shareholders that they’ll be left with nothing. In the past, distressed companies have been sold without shareholder approval.

Shareholders want to avoid a ‘fire sale’ of the bank’s assets at all costs. UKSA is supporting a bid proposal made by Olivant Advisers as run by the former Abbey National boss Luqman Arnold.

Arnold would keep the business intact giving its equity investors the best chance of recouping their losses should the share price recover.