75% ?

[Maxman]

I see that the percentage of takeover has been raised.At the open meeting afew weeks ago Brian stated that a 51% new shares were being issued for the myfc takeover were being issued this has now jumped to 75%. Does anybody know the reason for the jump in ownership.I feel a bit more nervous about the situation now,I wonder if the exsisting board have kept the right to buy back the shares if it all goes pearshape a few years time.

[Coldplayer]

If it goes pearshaped then MYFC hand over the club to the supporters trust.

 

Dont think there is a major difference between 51 or 75. Both are controlling stakes.

[David Holden]

Originally Posted By: Coldplayer

If it goes pearshaped then MYFC hand over the club to the supporters trust.

Dont think there is a major difference between 51 or 75. Both are controlling stakes.

Your knowledge of company law needs to be updated.

[Coldplayer]

Originally Posted By: David Holden

Originally Posted By: Coldplayer

If it goes pearshaped then MYFC hand over the club to the supporters trust.

Dont think there is a major difference between 51 or 75. Both are controlling stakes.

Your knowledge of company law needs to be updated.

It certainly does. As I said "dont think" which implies im not sure, perhaps you could enlighten me to the correct difference as like I said, im not sure.

[David Holden]

The majority of decisions that shareholders have to vote on that on require a simple majority to be passed.

 

However, serious decisions, such as the dissalution of the company, require 75% of the shareholders to vote in favour.

 

I know that some of these decisions can be blocked by the B shareholders, but it is by no means certain that the list is exhaustive.

 

Having a 75% is way more powerful than a 51% holding.

[Coldplayer]

Ahhh, I understand now.

 

Thanks for clearing that up.

[kmj]

If there was a 51% stake the existing EUFC shareholders suffer by having their total shares compressed into the remaining 49%. If the stake is 75% then they only have 25% of the remainder to be diluted between them. Result:- reduced shareholding for the existing directors and, more importantly, the other independant shareholders. The reason for this massive hike needs to be explained very quickly indeed!

[David Holden]

Originally Posted By: kmj

If there was a 51% stake the existing EUFC shareholders suffer by having their total shares compressed into the remaining 49%. If the stake is 75% then they only have 25% of the remainder to be diluted between them. Result:- reduced shareholding for the existing directors and, more importantly, the other independant shareholders. The reason for this massive hike needs to be explained very quickly indeed!

It's actually worse than that for the current shareholders, as the restructuring means that they lose any say in certain aspects of the running of the club.

[Alan ( GNFC )]

...and as 'B' and 'C' shareholders also appear to be saddled with the old Bowaters ground which is losing money quicker than Northern Rock!

[David Holden]

That's not what the actual document says, that just one of the spin doctor's intpretation.

 

Presumeably to make it easier to vote yes.

[Alan ( GNFC )]

So what differentiates betwen 'B' and 'C' shareholders, the sub division of the existing shareholders, extract as follows:

 

"In essence, the class A and B shares relate to the business of the football club itself, and the Class C shares allow the holders of those shares to control the Leisure and Developments subsidiaries, and to receive dividends from those subsidiaries."

[Santa]

I could hazard a guess as to who will be awarded the C shares (cue UU).

[kmj]

I agree. The important rights afforded to minority shareholders by the new Companies Act are probably now unattainable assuming that the current directors will not agree to co-operate with non-board shareholders/will be bound by undertakings to the new owners not to rock the boat. I suspect that most active independant shareholders would have liked there to have been a sale of at least a proportion of the directors shares to MyFC rather than to have so many new shares created thereby marginalising them even further. By increasing the new shares from 51% to 75% power has been centralised even more. Quite clever really.

 

As a matter of interest, what will the face value of the new shares be and will all A, B and C shares be ordinary shares? None of those so-called "preferential" shares please!

[Uncle Urchin]

Originally Posted By: David Holden

Having a 75% is way more powerful than a 51% holding.

its actually 76% so expect a sleight of hand somewhere...

Originally Posted By: Santa

I could hazard a guess as to who will be awarded the C shares (cue UU).

hardly rocket science is it now santa...you missed me on christmas eve by the way..