New Talks on Share Scheme – 19/2/07
February 19, 2007
Officials of the Supporters club are considering their next move following the football club board’s reluctance to accept its proposals to take the share scheme forward.
Fans and the supporter’s club executive are unhappy at the price directors have paid for shares compared to the figure the supporters club is paying for its shares.
The supporters club executive is now taking advice before the topic is likely to be discussed again when the committee takes up its invitation to meet the directors at The Beeches on March 14.
Clive Farquhar and David Brain from the Supporters Club Executive Committee and Edd Gould from the Share Scheme Committee had been mandated to negotiate a new share price and other changes to the scheme agreement following the supporters club agm in November.
The remit was agreed at a SCE committee meeting on December 4, and discussed at a share scheme meeting on December 18.
Proposals put to the board were:-
1. To take up rights issue shares immediately by using outstanding share scheme income and other Supporters Club funds to cover the element of ‘Rights Issue’ shares attributing to the 39,280 shares the SC owned prior to the share scheme.
2. A new share price of 50p.
3. An agreement to renegotiate the term of the share scheme before its expiry or to replace the share scheme with a new successor scheme linked to the stadium regeneration.
4. Consolidate the associate director post into a full director post in line with the original share scheme agreement on reaching 200,000 shares.
David Brain said: “The effect of the rights issue has been to already effectively reduce the relative price of the shares. Prior to the rights issue we were paying 10 times that of directors. At £5 we will be entitled to purchase one of the ring fenced rights issue shares at 50p. Effectively we will, without any price reduction, now be paying £5.50 for 2 shares, which is 5.5 times that of directors.”
The proposal was submitted to the January 2007 board meeting. It was agreed that a full discussion and any decision should wait the outcome of the stadium planning application as this could materially affect the aims and objectives of any scheme moving forward.
The board said that, in principle, if the stadium planning application was successful they would prefer to work with the supporter’s club to develop a successor scheme based around the new stadium and its development.
The SCE agreed to press the board for an answer and the proposals were re-presented to the February board meeting and were rejected by the directors.