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 state ownership.
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)