Judge Lord Hodge States The Reality

[Bluedell 5,342]

If his details werent discussed at the AGM then it is likely that this was never approved. Unless all other shareholders gave proxy - in fact, even if they did, it would still need to be brought to the sharholders as a resolution. Even if SDM could control that vote himself there is still protocol to follow and having the resolution tabled to the shareholders is one such protocol.

 

It could be that both SDM AND Bain had their trousers down with this one. It could be that Bain loses this case on a technicality (non-compliance with Companies Act) but that he could then possibly sue SDM for negligence. Again, I am no lawyer so dont know, but certainly seems plausible.

 

It definitely wasn't discussed at the AGM.

 

It's most likely that the contract was approved by the Board in line with other director contracts and nobody realised there was the rule for long term contracts for public companies. It's certainly not something I was aware although I'm not a director of a PLC.

[chilledbear 16]

If Bain loses does he owe Rangers??

[craig 5,199]

I wasnt aware of it either BD, although we have the excuse that we arent auditors anymore so leave it to them to work out what is right and what is not

 

As you well know, when it comes to the Companies Act, ignorance is no defence. Now, it could even be that Bain isnt the one to blame for this (nothing to suggest he was) but as CEO he has an obligation to ensure that the Company is compliant with the Companies Act. So he will be culpable by virtue of his position within the club.

 

It would seem to me that the club have a reasonably solid defence of this (again, to re-iterate, I am no lawyer so dont know) in that they had to either renegotiate his contract (as they were in breach of the CA) or he had to have his contract terminated. The downside is that it appears that his contract was just terminated. If the club offered him a new contract to remain in compliance and he turned it down then that is a solid case one would think. Contract being terminated may not work in the club's favour.

 

Who knows, but it will be interesting to see how this one plays out.

[craig 5,199]

If Bain loses does he owe Rangers??

 

The only thing I can see him possibly owing Rangers is legal fees if he loses.

[GovanAllan 0]

Thanks for all that Craig would be nice to see Bain and Minty turn on each other.