Quote:
Originally Posted by Whalley Red
No, it doesn't include EW's shares ... that is irrelevant. If EW has 51% of the current number of shares and the number of shares doubles (i.e. there is a 200K NEW share issue), EW's share of the TOTAL shares would drop to 25%.
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Am I banging my head against a brick wall here? The point is quite simple...If EW has 51% of the shares then he still in control of the club..and as such he has the final say on whether there is a new share issue or not - irrespective of the consequences.
There is another point that concerns me and that is the protracted time it has now taken to determin exactly what is owed to EW in the form of loans to the club and what is not. As far as I am aware, the accounts deposited at companies house were in the shortened form which gives a balance sheet and a summary P & L. None of these accounts to my knowledge have been qualified (that is, the auditors have not been entirely happy with the financial statements). Even with the shortened form of accounts, they need to see a fully reconcilied list of Directors Loans.
Given (I believe) that the last accounts deposited are for the year ending summer 2008, then the only issue should be the movement on loans for the year to 2009 when EW agreed to flog his shares. So what is the problem? Have the previous accounts been incorrect and if so why have they been signed off? Has there been a second (illegal) set of books? Any ideas, anyone?