LONDON British bank Northern Rock said its
nationalisation took effect on Friday and several board members
had resigned at the first meeting held under its temporary
Northern Rock said its shares had been canceled and
investors will be entitled to compensation. The determination
of compensation will be made by an independent valuer, which
must assume that Northern Rock is unable to continue as a going
concern and is in administration, the statement said.
Ron Sandler, who has been appointed executive chairman,
said he aimed to "build a company operating on sound commercial
principles that can be returned to the private sector, standing
on its own two feet."
Bryan Sanderson, Ian Gibson, David Jones and Paul Thompson
each retired from the board, although Jones will continue as
part of the management team. Andy Kuipers will remain on the
board and will continue as chief executive.
(Reporting by Steve Slater)