The resolutions and the new club constitution are phrased in the necessary legalistic jargon so these observations are to be taken as the interpretations of an unqualified observer and any corrections will be gratefully received.
It seems that the strategy to be employed to allow the Society to own part of the club is for the directors to issue a number of a new class of shares, ‘A Ordinary Shares’. The Society will then buy those shares for £376,450 and earn the right to appoint two directors to the board.
The proposed new Articles state that there will be eight on the board, two ‘A Directors’ and six ‘Ordinary Directors’. A minimum requirement will be that the Society’s appointees will need to convince the Ordinary Directors that they are ‘fit and proper persons’ under SFA/SPL tests.
While the proposals will lead to the Society becoming a formal part owner of the club it is not clear (to this layman) what route is open to the Society to increase its control as it grows. When the Society passed the initial launch target the board stated that the next step was for the Society to elect two people of ability and integrity to be directors and that the next goal was to reach the 1,000 voting member hurdle. Will the next step require another General Meeting and a new set of Articles?
When will the Society call its first meeting? Surely the members have to come together and elect their own board before any agreement to buy shares in the club?
The plan to create and sell a new batch of shares seems to differ from the notion that John Boyle’s shares would be transferred to the Society as its membership grew until ultimate fan ownership was reached. No doubt the thinking behind the plan will become clear at next Wednesday’s meeting.
In the meantime we have to maintain the momentum and ensure that the Society membership continues to grow. Many fans have already made the commitment, now’s the time to bring friends and relatives into the fold.