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Old 03-06-2010, 20:30   #94
Whalley Red
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Re: Coley & Jimmy Demand Contract Resolution

Quote:
Originally Posted by Tealeaf View Post
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.
That is not the case under company law. Boards of Directors have the power to issue new share issues, it is not EW's decision. The only case in which Board of Directors are not allowed issue new share would be if the sole purpose was to undermine a voting majority. So long as the new share issue was to raise capital (which is clearly needed), it would be 'proper' and so EW cannot block it.


Quote:
Originally Posted by Tealeaf View Post
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?
As outlined earlier and in previous threads, Ilyas is leading a full and proper investigation of the Club's financial affairs. Given the ad hoc nature these affairs in the past, this has clearly taken some time to complete. Unless you think that Ilyas has no incentive to find out the truth, there is no issue here other than for us to trust Ilyas' judgement when the facts become clearer. Because of the nature of what may be uncovered, not all the information may be put in the public domain, so once again, the issue to trust Ilyas with this.
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