|
Notts County Trust take controlling stake in Club |
 The Board of Notts County Supporters Trust has unanimously agreed to the acquisition of a further 20.8% shareholding in the Club. This will increase its overall holding to 51%.
A meeting of the Trust’s membership will now be held in order to ratify the decision. If the membership provides the necessary ratification, the Club will, for the first time in its 144 year history, become majority owned by its supporters.
PRE-EMPTION AGREEMENT
1. Ownership of the Club’s shares is governed by an arrangement established in 2003, known as the “pre-emption agreement”. Under this arrangement, whenever a shareholder wishes to dispose of his shares he must, first of all, offer them to the other shareholders. The existing shareholders have the option to acquire the shares offered in proportion to their current holding. Effectively this means that the Supporters Trust has the legal right to increase its holding from its present level of 30.2% to approximately 60%.
2. In the past, the Supporters Trust has intimated that it would not wish to take up more shares but instead exercise a power of veto through a ballot of its membership whenever a change of regime was mooted. However, the Trust Board now believe the time has come for the Supporter’s Trust to increase its involvement by becoming the majority shareholder in the Club.
3. In line with the above, the Trust Board have agreed to acquire part of the shareholding currently held by another minority shareholder, Haydn Green. An interest-free loan will be made available to facilitate this.
4. Under this arrangement, the Trust will only be taking up sufficient shares to increase our holding to 51%. The balance of Haydn Green’s holding will be offered (in accordance with the pre-emption agreement) to the other three existing shareholders. This will enable each of them to double their present holdings should they so wish. Finally following the expiration of the 28 day offer period any remaining shares will be made available to other directors, some of whom have in the past expressed a desire to acquire shares.
WHAT WILL CHANGE?
Notts County Supporters Trust Chair, Keri Usherwood says:
“This is not an exercise in control or power broking. The Club desperately needs a prolonged period of stability in order to continue to build on the firm foundations that have been put in place. We see our role as maintaining a “watching brief” over the happenings at the Club. The existing directors will continue to receive our support in running the Club. We will be on hand to ensure that the excesses of the past will not be repeated”.
“Football cannot continue to be run on a mixture of hand-outs, bail-outs and cop-outs. There is no place for egotists or those who use football for self-aggrandisement. The majority ownership of the Club will be in the hands of those who provide the basis for its very existence, the supporters”.
“We intend to promote an open culture where supporters are kept fully informed of all meaningful issues affecting their Club. Existing avenues of communication will continue to be improved and additional opportunities will be explored. After the difficult and depressing times of recent years this is an opportunity for the world’s oldest football league club to look to better times with its supporters at its heart”. |
