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Popolare Milano says to reform itself while keep cooperative model

People walk in front of the Banca Popolare di Milano in Milan October 25, 2010. REUTERS/Paolo Bona
People walk in front of the Banca Popolare di Milano in Milan October 25, 2010. REUTERS/Paolo Bona

MILAN (Reuters) - Banca Popolare di Milano pledged on Monday to reform its governance to respond to requests from the Bank of Italy but said it will keep its structure as a cooperative institution.

The bank, which was founded as a cooperative lender, is run according the "one shareholder, one vote" rule.

Critics say this rule gives too much power to its employee shareholders and their union representatives, allowing them to block strategic and restructuring proposals.

Sources told Reuters in July the Bank of Italy had told Popolare di Milano to revive a plan to convert itself into a joint-stock company. That plan had been put on hold.

(Reporting by Francesca Landini)

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