Only TWO clubs need to say #NotoNewco?
Mr.Doncaster has us to believe that there needs to be 5 #NotoNewco votes from the SPL clubs to stop Rangers being admitted back into the league. But reading through the SPL Articles of Association today, I found this under the ‘transfer of shares’ section.
It reads;
14. If:-
(ii) a trustee in sequestration, manager, receiver or administrative receiver shall be appointed in respect of a Member or any property of a Member, or an administration order shall be made in respect of a Member or any property of a Member or an order shall be made or an effective resolution passed for the winding up of a Member otherwise than for the purpose of reconstruction or amalgamation; then that Member or its manager, receiver, administrative receiver, administrator or liquidator or any other person entitled to the Share shall, on receiving notice in writing from the Board following the Company in General Meeting passing a Qualified Resolution that such notice should be issued by the Board and confirming the identity of the proposed transferee, transfer its Share to such other person as the Board shall direct at the price of £1 and the Club owned and operated by such Member shall forthwith cease to be a member of the League and the Club owned and operated by the transferee shall become a member of the League in its place.
What does it mean?
Well the first bit, an effective resolution passed for the winding up of a Member otherwise than for the purpose of reconstruction or amalgamation means if the club is wound up, or placed into liquidation, or enters administration.
Meanwhile, the second bold sentence says on receiving notice in writing from the Board following the Company in General Meeting passing a Qualified Resolution which, roughly translated means after the club is wound up, the SPL board will be notified and will hold a general meeting, where, if a Qualified Resolution is passed, the share of the club will pass to a new entity.
Bad news? The rules are there to allow a transfer? Well, yes, but one slight issue. What is a ‘Qualified Resolution’;
37 A Qualified Resolution (90%), shall be required for the passing of a resolution in respect of the following Reserved Matters:-
(i) the expulsion of a Club from the League ;
(ii) the passing of a resolution to wind-up the Company or to approve the presentation by the Company and/or its Directors to the Court of a Petition to wind-up the Company;
(iii) any alteration to the authorised or issued share capital of the Company (other than as a result of the transfer of any share in the Company made in accordance with these Articles and/or the Rules); and,
(iv) any alteration, variation or modification of these Articles or Section C of the Rules and/or any other part of the Rules the alteration, variation or modification of which would have the effect of altering, varying or modifying a provision or provisions in Section C of the Rules and/or of these Articles and/or or the adoption of a new, substitute or different Section C of the Rules and/or of these Articles;
So, a qualified resolution is 90% of the votes… hmmm, 12 votes, only 10% needed to veto the passing of the share… hmmm, you do the maths. TWO #NotoNewco votes mean the Share CANNOT be transferred. Two clubs needed – Aberdeen are saying NO, and sounds like ICT are doing likewise…
Could the SPL change the rule… sure… but again, read part four above – only with a Qualified resolution with 90% of the votes.
Am I wrong? Do these articles exist only as a figment of my imagination? Or, have the SPL been trying to pull the wool over our eyes. If I’m wrong, explain in the comments please!
Get the message out there – #NotoNewco
