Resolution Ltd shareholders expected to block further acquisitions

Shareholders in Resolution Ltd are expected to block any further acquisitions other than life businesses by the company under new rules to be confirmed in January.

Resolution, the consolidation vehicle, will focus only on the businesses acquired within its UK Life Project, the company said in a statement.

Any other potential acquisitions in other financial services sectors identified by Resolution Operations LLP (ROL) must be presented to another part of the Resolution Group, the company said.

In a statement, Resolution Ltd said: "While shareholders continue to support ROL's mandate to identify and bring new project proposals to the market, they would prefer any such new projects to be executed through separate investment vehicles established independently of [Resolution Ltd] to avoid blending their returns with those of the company's UK Life Project."

Today Resolution Ltd set out a revised operating agreement between it and other businesses within the group to protect investments in the UK Life Project.

The purpose of the amended agreements is to ensure both Resolution Ltd and ROL remain committed to the group, without conflicting either the UK Life Project or ROL's mandate.

The shareholder meeting to consider the amendments will be held on 13 January 2012.

Resolution Group, run by Clive Cowdery, owns several life companies which are closed to new buinsess.

Last week, Resolution dropped plans to buy zombie life company Phoenix.