May 16 Reuters Thames Water39;s nonexecutive director, Michael McNicholas, who represents Canadian pension fund OMERS on the board, is stepping down immediately, Britain39;s biggest water utility said on Thursday, as it struggles to secure an equity bailout.

Sky News on Wednesday reported that some of the company39;s shareholders were expected to quit the board after they refused to inject more than 3 billion pounds 3.79 billion of equity.

OMERS, or Ontario Municipal Employees Retirement System, holds a nearly 32 stake in Kemble Water, making it the largest external shareholder in Thames39;s parent firm, as per its website.

Thames Water, which supplies to about a quarter of the British population, was thrown into crisis earlier this year when its shareholders refused to provide a 500 million pound equity lifeline to stabilise its finances.

A number of board members at companies connected to Kemble Water are expected to resign in the coming days, the Sky News report said.

It is not immediately clear who or how many shareholders are expected to exit the board.

Thames Water continues to meet water regulator Ofwat39;s expectation that independent nonexecutive directors form the largest single group on the Board, the utility said in a statement.

The company said in March that it had until late next year to secure more funding or risk nationalisation.

Britain39;s privatised water industry has come under scrutiny after sewage spills have jumped with owners being paid…