UPDATED: The proposed share issue at Hereford United has been simplified according to details received by shareholders this morning.
Originally there were five resolutions to be voted on, but thanks to work done by the board along with Hereford legal firm Lanyon Bowdler, shareholders will only have two resolutions to vote on at their next General Meeting on Thursday September 26th.
Lanyon Bowdler have reviewed the approach taken previously by Pinsent Masons and decided that much of their work wasn't appropriate for a Private Limited Company such as Hereford United.
And as there was some confusion before and at the General Meeting on July 22nd, a revised resolution 2 will be put to the meeting. Resolution 1, to approve conversion of loans into shares, remains as before.
Should they both be passed, which appears likely as it only needs a fraction over 50% of the votes received at the General Meeting to go through, then the board will be able to issue new shares to current shareholders and then to new shareholders.
The ability for directors and others who have loaned money to the club to convert those loans into shares remains but current shareholders will not be offer a 'multiplier' as had been hoped.
The ability for directors and others who have loaned money to the club to convert those loans into shares remains but current shareholders will not be offer a 'multiplier' as had been hoped.