Shareholders of Lloyds TSB are set to vote on the proposed merger with HBOS today to create the UK’s first super bank.

Lloyds TSB is holding a shareholders’ meeting at the Scottish Exhibition & Conference Centre in Glasgow this morning, where investors can vote on several important issues.

These include the merger, as well as an open offer of shares and the issuance of preference shares, as part of the Treasury’s scheme to recapitalise the banks.

Last month, the two banks revised their agreement after the markets deteriorated further and HBOS shareholders are now set to receive 0.605 Lloyds TSB shares for every HBOS share they own.

Shareholders will also be voting on a change of name for the group, which will be called Lloyds Banking Group.

Approval of these resolutions, which in some cases require a simple majority and others a 75 per cent majority of votes in favour, will be crucial not only for Lloyds TSB and HBOS but for the stability of the entire banking system.

Graham Spooner, investment adviser at The Share Centre, said: “Wednesday is going to be a big day for Lloyds TSB and HBOS shareholders and the financial sector as a whole.

“The decision to merge the two banks could help to bring some much needed stability to the UK financial sector and improve confidence among customers and investors.”

Mr Spooner said the merger could offer long-term value for investors, while a rejection could lead to HBOS shares plunging even lower.

HBOS shareholders are also yet to approve the merger and will vote at the HBOS general meeting in December.