Hereford United shareholders are to meet on Thursday September 26th at the Starlite Rooms to discuss the proposed share issue.
The meeting is set to commence at 10.30am.
Chairman David Keyte has given an update to the Official Site (http://www.herefordunited.co.uk/) about the proposed share issue.
Chairman David Keyte has given an update to the Official Site (http://www.herefordunited.co.uk/) about the proposed share issue.
Chairman
David Keyte stated earlier today, “we met our shareholders previously
in late July when there was concern expressed about the complexity and
accuracy of the documentation we had presented to the shareholders when
asking them to vote on our proposal to increase the shareholding in the
Company.”
“On
the night it was agreed that, subject to the documents being more
appropriately worded, the vote could be held. After some very
constructive discussion 69% of the votes cast were in favour of the
proposals.”
“In
order to present the Resolutions more clearly for a second time, we
have engaged the services of the Hereford based legal firm Lanyon
Bowdler. Interestingly, they have advised us that, in their opinion and
using the original Articles of Association, we actually gained
sufficient votes in the first meeting to both carry on with the Share
Issue and be able to convert loans into shares. That there is actually
no need to hold a further meeting.”
Keyte
added however, “To ensure that the whole process be seen to be
completed thoroughly and fairly, I have expressed a wish to re-run the
voting so that the shareholders can take the opportunity to clarify any
uncertainties before voting. We wish to ensure the presence of our legal
advisor at the meeting and hence it is timed at 10.30am.”
“Although
we have lost a couple of months in our wish to widen the ownership of
the football club, we firmly believe this is the correct way forward and
I want it to be accepted as an appropriately organised vote. There were
a small number of dissenters at the first meeting and we would like to
win them over if we can.”
“From
conversations it seems as though there will be a good number of people
interested in purchasing shares should the opportunity arise. If we can
get the vote through this time, the sequence of events is that we have
to give first opportunity to the current shareholders to purchase the
new shares.
"If
they are not fully taken up those people with outstanding loans with
the Club would be given the option to convert them into shares and
finally if there are shares still remaining we would seek to attract new
investors. ”
The
Chairman stated “Originally, in 1939, there were 10,000 shares valued
at 5 shillings each and somewhere in the 1960’s or 70’s the shares were
increased to 40,000 at 25pence, so if we can win the vote, it would not
be the first time that the ownership base has been widened.
"The
door would be opened for the likes of HUISA to increase its share of
the company and also for the new Supporters Trust to purchase shares to
gain a foothold in the football club, so it could be very much for the
supporter as well as the corporate investor. But we have to win the vote
first. ”