NATIONWIDE has repelled the latest bid by one of its members to convert it from a building society into a bank.

Andrew Muir sent in a resolution ahead of the annual general meeting, on July 25, that the Swindon-based society convert.

It was backed by 700 members and could have forced a vote on the issue at the AGM.

But the society has decided to reject the resolution after advice that it had no legal effect and could not be put to the meeting.

If carried, the resolution would have meant windfall payments of up to £1,000 for members as they were given shares in the company.

Spokeswoman Jackie Lawrence said: "Nationwide is still committed to mutuality. If it converts, members will be worse off in terms of loan rates and charges."

She said that over the last five years the society has given £1.4 billion back to its members.

"As a building society we don't have shareholders so we can put the members first before profit."

The society has also rejected seven other resolutions put forward by another member, Tim Tanner, for the same reason.

They included measures designed to curb the power of the board.

Nationwide is the largest building society in the world and employs some 2,800 people at its headquarters on Pipers Way.

It could face a new challenge over its mutual status at the July AGM.

Three members are standing for election on to the company board: Andrew Muir, Tim Tanner and Alan Debenham.

Mr Debenham has already stood unsuccessfully three times.

They are all standing with the intention of forcing a vote on de-mutualisation.