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Thursday, June 09, 2016

Short Report From HUST SGM


A special general meeting of HUST took place this evening at the Starlite Rooms.

Richard Tomkins chaired the meeting which was attended by around 30 members. Also on top table were Russell Cheasley and Craig Goodall.

Firstly the chairman asked for apologies then asked for the minutes of the previous SGM held last February to be approved. They were passed.

Then onto two 'HUST' items.

The meeting approved the change of name from Hereford United to Hereford FC in HUST's articles of association.

They also agreed an updated election policy based on the current Supporters Direct model.

A member asked for extra evidence to be produced when a candidate stood for election such as a passport.

The main business of the evening was a discussion about the Crawford Shares issue. The chairman reviewed how the club was set up and how Rob Crawford was set to be one of the four investors. This didn't happen as Crawford was abroad at the time but later he contacted the HFC board and said he would still like to become an investor.

The proposal is for HFC to increase the issued share capital in the club from £478,000 to £578,000. The extra £100,000 to split into two to allow the sale of 50,000 shares to a fifth investor and offer HUST the opportunity to acquire a further 50,000 shares. In agreeing to this HUST will have five years from March 2015 to March 2020 to fulfil its option to purchase 50% of the shares, potentially increasing its total investment to 289,000 £1 shares.

Two other HUST directors then explained the pros and cons of backing Crawford's proposed investment.

A general discussions followed which concentrated more on whether HUST should aim to raise enough money to purchase a 50% stake in the club or a stake of 25% which would be enough to have some control of the club.

It was noted that the running costs of the club was very high for a club which was in the 9th tier last season. This was down to the stadium which was described as a 4th tier and the excellent support.

For example for big games 45 to 50 paid stewards were required. The club was not awash with money as had been suggested in some circles especially given the proposed expenditure for the next twelve months.

One point of particular note was the view that should HUST aim to purchase a 50% shareholding that would introduce much needed capital into the club and reduce the need for further investment by the club.

Mike Langford, who is both a HUST director and a HFC director, addressed the meeting with some explanations about income and expenditure at Edgar Street.

Back to the Crawford issue and it was confirmed that the vote to accept or reject his proposed investment would take place between June 16th and June 23rd with the result hopefully announced late that evening.

In other business it was revealed that HUST hope to have a 'Football Festival' in Hereford High Town on July 9th.

Finally the HUST AGM will take place on October 20th.

The meeting ended at 8.45pm.