Trust AGM motion re Trust appointed directors

[Pete Martin (CTID)]

It might be helpful for trust members to know why the trust believe that gaining a shareholding of 75% is an urgent priority.

Although I freely admit to not being an expert in this area, I think you will find that, although the Trust is the majority shareholder, 75 per cent of shares are required for the Trust to have complete and unqualified control,

It's not an 'urgent' priority afaik because it was mentioned in Paul Morrish's V10 plan in 2006 and we're still not there yet!

I'm sure Dr. Dave will be along soon to confirm and add any salient points.

 

[Terryhall]

It might be helpful for trust members to know why the trust believe that gaining a shareholding of 75% is an urgent priority.

It's perhaps a bit impenetrable but this is a decent summary of the benefits of the 75% threshold compared to 50% (which is where the Trust currently sits).

http://www.shareholderrights.co.uk/RightsOfAShareHolder/75.html

 

[elginCity]

It's perhaps a bit impenetrable but this is a decent summary of the benefits of the 75% threshold compared to 50% (which is where the Trust currently sits).

50% ? When did the Trust offload its shares, as it used to be around the 63% mark ? Remember reading the CB once wanted the Trust to reduce their shareholding to 51% in order to attract external investment, but the TB balked at the idea.

Changing the current Articles was given as one of the reasons for aspiring to own 75% IIRC.

 

[Terryhall]

50% ? When did the Trust offload its shares, as it used to be around the 63% mark ? Remember reading the CB once wanted the Trust to reduce their shareholding to 51% in order to attract external investment, but the TB balked at the idea.

Changing the current Articles was given as one of the reasons for aspiring to own 75% IIRC.

Sorry, what I meant was that the next threshold below 75% is at 50%, so given the current shareholding, the rights of a 50% shareholder are the rights the Trust currently enjoys. You are right that the Trust holds more than 50% (63% sounds right to me but not sure of the exact figure).

Amendment of the Articles is one of the benefits of a 75% shareholding.

 

[Pete Martin (CTID)]

50% ? When did the Trust offload its shares, as it used to be around the 63% mark ? Remember reading the CB once wanted the Trust to reduce their shareholding to 51% in order to attract external investment, but the TB balked at the idea.

Changing the current Articles was given as one of the reasons for aspiring to own 75% IIRC.

Afaik, it has never been above 53.6%

 

[John William]

50% ? When did the Trust offload its shares, as it used to be around the 63% mark ? Remember reading the CB once wanted the Trust to reduce their shareholding to 51% in order to attract external investment, but the TB balked at the idea.

Changing the current Articles was given as one of the reasons for aspiring to own 75% IIRC.

The difference is the untraced shares, many owned by companies which no longer exist and whose successors if any are unknown. If these are disregarded the Trust controls somewhat over 60%. But that doesn't matter very much - 50.1% has the effective same power as 74.9%.

The current Articles are unfit for the modern world, but if the Trust had 75% they could update them without the support of the small shareholders who have no input into the management or strategy of the company / Club.

I would guess that most of the small shareholdings are kept for sentimental reasons or through sheer inertia; not a penny has ever been paid in dividends. If the total shareholding was increased by a Rights Issue or similar, these shareholders would simply carry on as before, with the same number of shares (though they could buy additional shares if they wanted). Also if new shares were issued the debt of the Club to the Trust could be reduced significantly, improving the Club's financial health.

 

[iscalad]

"At least, I think I must be."

"There you go, man, stay as cool as you can..."

[How many Exewebbers know that lyric, I wonder?]

Moody Blues..

 

[John William]

Moody Blues..

You win the star prize.

 

[elginCity]

Sorry, what I meant was that the next threshold below 75% is at 50%...

No need for that, Terry, it was poor comprehension on my part ! You did say threshold.

 

[fred binneys head]

I know the difference between the 50% shareholding threshold and the 75% one, my point was more that it has been mentioned many times before but I'm not sure it has ever been explained to people who aren't in the know already and why it might be an "urgent priority".

Even saying "we can change the articles of association" - what do you think the average fan will make of that? What are articles of association? Why is it important to change them? (Or even an urgent priority).

It's back to communication - a simple explanation of what you're trying to achieve will help get buy in.