MEMBERS of Skipton Building Society delivered a "resounding defeat for carpetbaggers" at their annual meeting this week.

A record 168,000 members voted and more than 90 per cent cast their ballot in favour of the society's nominations for directors, including John Goodfellow, the chief executive and main defender of the Skipton's existing mutual status.

Normally annual meetings are quiet affairs attended by just a few members. But the arguments over whether the Skipton should retain mutuality - ownership by its members producing higher returns on investments and lower mortgage rates - or convert into a company owned by shareholders, thus producing a one-off windfall payment for members, attracted around 20.

Most of those in the Hanover International Hotel appeared ready to defend the Skipton's mutual status but dotted among the audience was a number of "carpetbaggers".

Among them was Richard Yendall, unofficial leader of the carpetbaggers, who set up an internet site to co-ordinate the attack upon mutuality. He sold his website earlier this year to Skipton millionaire Peter Gregory, who owns an internet company called Totalise.

The website urged carpetbaggers to vote against electing directors John Goodfellow, John Macaskill and David Cutter.

Mr Yendall also proposed a motion that the board should consider conversion but admitted that he had been outflanked when the Skipton directors urged members to support that motion, arguing that they "considered" conversion every year as part of a review.

More than 90 per cent of members voted for that resolution.

Mr Yendall argued that his motion was a motion to convert but chairman Richard Robinson retorted: "We are simple people in Skipton. We don't have spin doctors. We have a resolution before us to consider. We will consider....we will communicate with members at the end of the year."

Announcing the vote, Mr Robinson said: "From an all-time record number of votes cast, an overwhelming majority of members are supportive of the board.

"It is a clear endorsement of the board's mandate to run this society in the interests of all its members and is a resounding defeat for the carpetbaggers."

He added that members would be informed of the review of its current status later in the year.

After the meeting Mr Yendall said that he found it curious that 90 per cent of Skipton members voting for his motion should be termed a defeat. He said that the vote may prompt bidders to come out of the woodwork with a takeover offer.

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