The RBoS Shareholders Action Group was formed in early 2009 to represent the interests of shareholders in the Royal Bank of Scotland (RBS). This group is actively contemplating legal action on behalf of shareholders in RBS, and was formed at the request of a number of RBS shareholders who have lost substantial sums of money as a result of their investment in this company. RBS shareholders believe the considerable losses they have sustained can be attributed to factors beyond the financial crisis. The rights issue the bank undertook in May 2008, which they believe was promoted on a misleading basis, is of particular concern. This was the largest ever UK rights issue at that time, raising £12bn for RBS. The RBOS Shareholders Action Group believes that, at the time of the rights issue, the company’s assets were overstated and liabilities were understated. The rights issue was priced at 200p which even then was a discount of 35% on the market price. However, the company has recently traded at about 40p, resulting in a massive destruction of value.   The rights issue was clearly insufficient and subsequently the company has had to take substantial funds from the Government to cope with further asset write-downs and as part of the “recapitalisation” programme for banks to improve their core balance sheet ratios. This has resulted in the large dilution of shareholders’ interests and the Government now has a financial stake of 85% in the business. Effectively the business has been nationalised in all but name, with the Government firmly in control of the company and entitled to dictate its policies and strategy. In addition, investors had their dividends struck out with devastating results for the pension incomes of thousands. Shareholders in RBS are invited to contact us so that they can register their interest in the Group and in any subsequent legal action that may be mounted. RBS shareholders who wish to support us should go to the Membership page. The Rights page contains more analysis of the rights issue. Constitution The company is a “special purpose vehicle” formed to pursue legal action as a company limited by guarantee, i.e. it is a “not for profit” organisation. The company is owned by its members and its objects are to act as claimant on behalf of its members and others in respect of losses suffered from investment in companies in which they have invested. More information on the legal constitution of the Group is given on this web page: Legal - or a copy of the Articles of Association can be supplied upon request. Other Groups You may be aware that there are other groups that claim to be pursuing legal actions against RBS, particularly in respect of the rights issue. What differentiates our group from those? One difference is that our Group is under the control of shareholders in RBS and is not being organised or managed by lawyers. We believe it is important that shareholders should have control of such "Action Groups" to enable costs to be minimised and to avoid any possibility of the claim being pursued when it has little merit, or is unlikely to be beneficial to shareholders in RBS. Also it ensures that we can select the best legal team available. Common Questions and Answers See Questions for some of the common questions that people ask, and the answers to them. Profiles and Comments from Investors Interactive Investor, one of the UK's leading online financial services providers, has assisted us by providing some profiles of investors in RBS, including their comments on what happened. In addition there is a short video which is well worth looking at. Go to www.iii.co.uk/spotlight/rbs to view this material. No Link to RBS The RBoS Shareholders Action Group is not associated in any way with the Royal Bank of Scotland Group Plc (RBS). To go to the Investor Relations section of their web site where you will find comprehensive information on RBS, please use this link: www.investors.rbs.com