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Tom Winnifrith: Letter to SFA demanding Enquiry + asks AIM to launch formal probe


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http://www.shareprophets.com/views/10353/rangers-fc-an-open-letter-to-the-scottish-fa-demanding-formal-enquiry

 

By Tom Winnifrith, The Sheriff of AIM | Friday 30 January 2015

 

 

 

Earlier this week I asked if the Board of AIM listed Rangers FC could justify why it had rejected two refinancings in favour of a third proposal put forward by a major shareholder in the club Mr. Michael Ashley. The Board of Rangers RF (RFC) is dominated by business associates of Mr. Ashley. Can Rangers show paperwork to justify its decisions and therefore show that it did not breach Section 994 of the 2006 Companies Act? Rangers has not responded. And so today I have written to the Scottish FA asking it to formally investigate.

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Rangers FC - I ask AIM Regulation to launch formal probe

 

By Tom Winnifrith, The Sheriff of AIM | Sunday 1 February 2015

 

Earlier this week I asked if the Board of AIM listed Rangers FC could justify why it had rejected two refinancings in favour of a third proposal put forward by a major shareholder in the club Mr. Michael Ashley. The Board of Rangers FC (RFC) is dominated by business associates of Mr. Ashley. Can Rangers show paperwork to justify its decisions and therefore show that it did not breach Section 994 of the 2006 Companies Act? Rangers has not responded. And so today I have written to AIM Regulation Team asking it to investigate

 

I have already written to the Scottish FA asking it to investigate – see HERE.

 

Dear Sirs.

 

Request for a formal investigation into Rangers FC & the conduct of its board

 

As you are no doubt aware the board of Rangers FC is dominated by associates of Mr. Michael Ashley. In the past month Rangers has rejected two proposals to refinance and accepted a third from Mr. Ashley.

 

In my humble opinion the Ashley proposal was not in the best interests of Rangers since merely by taking on yet more debt for a company that is not generating cash, it does nothing to resolve balance sheet weakness. That could have been addressed by the Sarver equity financing proposal.

 

As I am sure you are aware, Section 994 of the 2006 Companies Act requires a company to treat all shareholders equally.

 

The board of Rangers has refused to answer the question as to what independent financial advice it took in deciding that the Ashley proposal was in the best interests of ALL shareholders. For the avoidance of doubt, consulting China Fraud specialist Mr. Paul Shackleton at WH Ireland does not count as independent advice since his firm is paid a retainer by Rangers FC.

 

An AIM listed company. Even one as grotesquely mismanaged as Rangers must as part of its continuing obligations as an AIM Casino stock, be able to show that it is abiding by the requirements of the Companies Act.

 

I therefore request that you launch a formal enquiry into Rangers forcing it to prove what independent financial advice it took in assessing all three offers in order that it can demonstrate clear compliance with the 2006 Companies Act and forcing its Nomad, the hapless Mr Shackleton to show what steps he took to ensure that his client assessed all offers in a thorough fashion.

 

If neither Rangers or Mr Shackleton can demonstrate that a fair independent assessment was made I suggest to you that immediate regulatory sanction must be applied to both.

 

I remain, as ever, your obedient servant

 

 

Tom Winnifrith

The Sheriff of AIM

 

http://www.shareprophets.com/views/10372/rangers-fc-i-ask-aim-regulation-to-launch-formal-probe

Edited by Zappa
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Here's the rest of the article which is missing from the first post of the thread -

 

The letter has been emailed to the newly appointed Compliance Officer at the Scottish FA Mr. Vincent Lunny.

 

Dear Mr. Lunny.

 

Request for (another) formal investigation into Rangers FC & the conduct of its board

 

As you are no doubt aware the board of Rangers FC is dominated by associates of Mr. Michael Ashley. In the past month rangers has rejected two proposals to refinance and accepted a third from Mr. Ashley.

 

In my humble opinion the Ashley proposal was not in the best interests of Rangers since merely by taking on yet more debt for a company that is not generating cash, it does nothing to resolve balance sheet weakness. That could have been addressed by the Sarver equity financing proposal.

 

As I am sure you are aware, Section 994 of the 2006 Companies Act requires a company to treat all shareholders equally.

 

The board of Rangers has refused to answer the question as to what independent financial advice it took in deciding that the Ashley proposal was in the best interests of ALL shareholders. For the avoidance of doubt, consulting China Fraud specialist Mr. Paul Shackleton at WH Ireland does not count as independent advice since his firm is paid a retainer by Rangers FC.

 

The Scottish FA has a duty to ensure that the affairs of all member clubs are handled properly since a club has many stakeholders: players, fans, the community and ALL shareholders and all must be treated as equals.

 

I therefore formally request that you launch a full enquiry into what independent advice, if any, led the board of Rangers FC – acting for all shareholders equally - to reject two proposals, notably the Sarver offer while accepting the Ashley proposal.

 

 

I remain your obedient servant

 

 

Tom Winnifrith.

 

http://www.shareprophets.com/views/10353/rangers-fc-an-open-letter-to-the-scottish-fa-demanding-formal-enquiry

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