Members of the Nationwide Building Society yesterday narrowly voted to reject a proposal to float it on the stock exchange, which could have given them windfalls of around £2,000 each.

Members of the society voted at their annual meeting by 50.8 per cent to 49.2 per cent against the pro-flotation resolution which had been forced on the board by rebel members and also narrowly defeated two related motions.

"The board has a mandate to continue with our building society strategy, providing long-term value to our members and competition and diversity in the financial services marketplace," said Nationwide chairman, Mr Charles Nunneley.