THE RAC has confirmed that it is considering moving to demutualised status. Last week chairman Jeffrey Rose was ordered to stand down after he sent a letter to the 12,000 full members suggesting such a move.

The RAC has now confirmed that it has been considering becoming a fully commercial operation for more than a year, but objected to Rose taking action without the approval of the board. Head of campaigns Edmund King, acting as spokesman, said: 'The RAC has been looking at these issues for more than a year and we commissioned both financial and legal experts to look at these issues more than 12 months ago. However, Jeffrey Rose acted without the board's or the committee's agreement.'

Speculation is rife that full members of the RAC Club in Pall Mall, who include Stirling Moss and Damon Hill, could benefit from windfall payouts of up to £40,000 if the demutualisation goes ahead. Rose's proposal made no reference to RAC staff or the millions of motorists who qualify as associate members by using the RAC's services.