Equitable seeks court vote ruling

EQUITABLE LIFE has begun legal action in the High Court in the next stage of the insurer's long-running effort to resolve its financial troubles.

Equitable is seeking the court's approval to put its compromise proposals to a vote by policyholders. However, some policyholders are expected to oppose aspects of the deal on the grounds that it should not be binding on all the society's members.

Equitable is proposing to lift the value of guaranteed annuity rate (GAR) policies by 17 1/2% in return for holders waiving their guarantees. It is also offering a 2 1/2% increase in the value of non-GAR policies if their holders agree not to sue Equitable for mis-selling.

The move is aimed at capping Equitable's liabilities at £1.5bn. Voting packs are expected to be distributed in the middle of December with voting due to be completed a month later. Equitable will then need to return to the High Court to have the details of the scheme ratified.