Generic Sevco / Rangers meltdown thread

[CropleyWasGod]

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Allow me to be the first financially ignorant to ask...Is that specific to The Rangers 2012, or does it pertain to all directors of all companies?

To me, that's from a company's Memorandum and Articles of Association, which are the internal rules for that company. Every company has their own set; smaller companies tend to have similar, standard ones.

It's not clear whether that is from Rangers' Mem and Arts. However, if it is, it makes pleasant reading :)

Rangers' response to the Green action today was quite telling, I thought. They didn't say that Green had.no case. They said that they would defend it vigorously. There's a subtle difference :)

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[Ozyhibby]

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To me, that's from a company's Memorandum and Articles of Association, which are the internal rules for that company. Every company has their own set; smaller companies tend to have similar, standard ones.

It's not clear whether that is from Rangers' Mem and Arts. However, if it is, it makes pleasant reading :)

Rangers' response to the Green action today was quite telling, I thought. They didn't say that Green had.no case. They said that they would defend it vigorously. There's a subtle difference :)

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That's what I took from their statement today.
And no mention of the appropriate insurance

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[AndyM_1875]

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Wasn't this particular Celtc hysteric one of those to stick his hand up and say he wanted to buy Hibs?

Yep. And Tom Farmer identified him as an absolute spoofer.
Bullet well and truly dodged.

[Bostonhibby]

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That's what I took from their statement today.
And no mention of the appropriate insurance

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Nowt unusual about the wording used but highly unusual for there to be no directors and officers cover if indeed there is none. Unless of course no underwriter fancied guaranteeing the fidelity(amongst other risks) of the various fit and proper persons who have piloted the good ship the rangers. The fun begins if the directors had no litigation insurance but the new club is liable for defence costs or any costs incurred by directors in the course of proceedings.

[Andy74]

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To me, that's from a company's Memorandum and Articles of Association, which are the internal rules for that company. Every company has their own set; smaller companies tend to have similar, standard ones.

It's not clear whether that is from Rangers' Mem and Arts. However, if it is, it makes pleasant reading :)

Rangers' response to the Green action today was quite telling, I thought. They didn't say that Green had.no case. They said that they would defend it vigorously. There's a subtle difference :)

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There must be the usual exclusions on wrongdoings though?

[CropleyWasGod]

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There must be the usual exclusions on wrongdoings no though?

That may well be in the next paragraph. ... the one we're not shown

That said, if CG wrote the Mem and Arts himself, maybe not. ....
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[Ozyhibby]

Rangers FC board 2012-Malcolm Murray (centre) with Financial Director Brian Stockbridge (left), Imran Ahmad of Zeus Capital and CEO Charles Green (right).
THE old Rangers board signed a severance deal with Charles Green agreeing to pay his legal costs if he was ever accused of being a criminal, the former chief executive claims.

Green, 62, is accused of obtaining “many millions of pounds” through fraud during his time at Ibrox. He is now seeking £500,000 from the club to fund his criminal defence.

Court papers served at Ibrox by lawyers acting for Green claim Rangers must cover the legal bills for his defence against fraud charges relating to his takeover, share issues and running of the club.

Green is demanding the cost of his criminal defence “without limitation”, along with the bill for solicitors, senior and junior counsel and expert witnesses.


He is also demanding that the club pay for the cost of his action to try to force them to pay his criminal defence costs.


The papers were served on Rangers after the club knocked back pleas from Green’s lawyers to bankroll his court costs.

The club will be given just three days to defend the action once the papers are formally lodged at the Court of Session.

If they fail to challenge it, the legal move could be granted.

This month, Green appeared in court on charges relating to conspiracy, fraud, serious organised crime and a breach of the Companies Act.

VIEW GALLERY
Last night, Rangers vowed to fight his action over legal fees.

Chairman Dave King said: “Charles Green approached the club prior to his arrest and demanded that we pay his
legal costs in respect of his co-operation with police in its criminal investigation into his time as an officer of the club.

“I advised him that we would not do so.

“He was subsequently arrested and has now approached the court to compel the club to pay the legal costs of his defence to the criminal charges.

“This application will be strongly resisted.”

It’s the latest twist in a complex web of criminal and civil court battles centred on Rangers.

Green’s summons claims a Compromise Agreement approved by the former Rangers board on his departure from the club in April 2013 means they are contractually bound to pay his legal costs to defend criminal action started against him “on or around September 1”.

VIEW GALLERY Duff and Phelps joint administrator David Whitehouse joins Charles Green (right) in addressing the media after having his consortium's bid for Rangers accepted. May 2012
It goes on: “Reasonable professional costs include the cost of instruction of solicitors, senior and junior counsel and such expert witnesses, if any, as senior counsel advises are necessary.”

In a final clause, Green demands that the club must also pay his legal fees in raising the writ at the Court of Session.

The writ states that former chief executive Green has been “the subject of threats of violence from members of the public”

As a result, Green’s address is given as his solicitors – DAC Beachcroft Scotland LLP at 125 West Regent Street, Glasgow.

Malcolm Murray was chairman at Ibrox when Green’s consortium purchased the club’s assets for £5.5million in June 2012.

He was still in that role when Green’s Compromise Agreement was approved in April 2013. Murray stepped down that May.

VIEW GALLERY David Somers: Arrived November 2013, left March 2015. Resigned yesterday as Rangers chairman. After a career in fund management, supporters hoped he would bring investment to the club but his tenure was described by one fans' group as "inept".
The relevant clause states: “The company will pay any reasonable professional (including, without limitation, legal and accounting) costs and expenses properly incurred by the employee after the date of this agreement which arise from his having to defend, or appear in any administrative, regulatory, judicial or quasi-judicial proceedings by a third party as
a result of his having been chief executive of Rangers Football Club or the company.”

In this case, the “third party” would be criminal prosecutors from the Crown Office.

Green is one of seven people facing criminal charges covering fraud and organised crime over the meltdown of Rangers from 2012. The club went into administration and subsequent forced liquidation by HMRC over a “phantom” £80million tax bill, The club were later cleared of having ever owed the taxman.

The club’s assets were bought by Green’s Sevco company.

The writ lays bare the criminal charges faced by Green.It says: “He is accused of participating in a fraudulent scheme to acquire the business and assets of Rangers Football Club for Sevco Scotland at less than their true value.

“He is accused of conducting a fraudulent initial pubic offering by which substantial equity capital was raised.

“The defender and/or Sevco Scotland received the fruits of that conduct in the form of the acquisition of the business and assets of Rangers and the funds raised by means of the initial public offering.”

Green’s bill to defend the charges is likely to be astronomical.

The writ says: “The criminal proceedings are extremely complex. The charges extend to 20 pages of narrative.

“The indictment indicates in excess of 1000 documentary productions and in excess of 250 witnesses.

“The pursuer is accused of fraudulently obtaining assets worth many millions of pounds.”

It is understood the figure relates to the £22million share issue raised after Green’s takeover and appeal to fans for funding.

The writ adds: “If convicted, a substantial custodial sentence is likely.

“The proceedings are likely to be the most high-profile criminal trial held in Scotland in recent years.”

Yorkshireman Green was arrested on September 1 and appeared at Glasgow Sheriff Court the following day.

On September 16, an indictment was served on him. A preliminary hearing is due to take place at the High Court in Glasgow on October 16.

Indictments were also served on former Rangers owner Craig Whyte, ex-commercial director Imran Ahmad and former administrators David Whitehouse and Paul Clark, along with David Grier and Gary Withey.

Whyte, Clark and Whitehouse were also charged with involvement in serious organised crime.


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[Jack]

I would imagine Craig Whyte and Imran Ahmad will be similarly covered for legal expenses.

[Ozyhibby]

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I would imagine Craig Whyte and Imran Ahmad will be similarly covered for legal expenses.

Craig Whyte has never been a director of the new Rangers so he won't be.
Ahmed might be though. It seems to be that it was part of his severance deal so it might depend on what Ahmed negotiated.
One thing is for sure, Charlie won't get cheap lawyers and the case is massive. New Rangers liability here could be huge.
And there does not appear to be an insurance policy to cover it.


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[Bostonhibby]

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Craig Whyte has never been a director of the new Rangers so he won't be.
Ahmed might be though. It seems to be that it was part of his severance deal so it might depend on what Ahmed negotiated.
One thing is for sure, Charlie won't get cheap lawyers and the case is massive. New Rangers liability here could be huge.
And there does not appear to be an insurance policy to cover it.


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So this may give dodgy Dave the chance to go bust again to avoid a seriously expensive liability, and shaft a few more innocent creditors along the way.

Problem might be his inability to shake off Mike Ashley the secured creditor. Rock and a hard place, keep up the good work Charlie-fit and proper person and former saviour of the rangers

[Jim44]

"THE old Rangers board signed a severance deal with Charles Green agreeing to pay his legal costs if he was ever accused of being a criminal, the former chief executive claims."


Is this common practice? Honour among thieves,eh?

[CropleyWasGod]

There's a fair bit of confusion here, not for the first time :)

Ozy posted something from someone's Mem and Arts. The BBC said that the legal deal was in Green's contract. The Record is saying that it was part of his severance package.

They're all different things. If CG has been smart, the deal will be in all 3 :)

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[Ozyhibby]

https://johnjamessite.wordpress.com/...n-suit-re-ipo/


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[CropleyWasGod]

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https://johnjamessite.wordpress.com/...n-suit-re-ipo/


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How does he know that there is no insurance in place?

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[greenginger]

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https://johnjamessite.wordpress.com/...n-suit-re-ipo/


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Does it not read that the cost of criminal prosecution defence is only met if green is found not guilty.

[Ozyhibby]

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How does he know that there is no insurance in place?

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I've no idea but if there was Insurance in place, wouldn't new Rangers be sanguine about Greens claim, knowing that the insurance would cover it?


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[Ozyhibby]

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Does it not read that the cost of criminal prosecution defence is only met if green is found not guilty.

Probably but the decision could be years away but the lawyers bills will need paid now.
Someone will no doubt correct me but I think new Rangers pay for the defence but reclaim from Green if he is found guilty. Could be wrong but right now he is innocent and feels he needs his legal bills paid by new Rangers.


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[PatHead]

Looking at this in the real world, rather than the strange world belonging to Sevco, it is not unreasonable for a senior employee or director to be protected in this way in case someone took them to court for decisions made whilst they were in charge. The allegations could be unrealistic so the accused must have the means to protect themselves by employing lawyers to defend them. As said above most firms would have legal cover for these instances.

However we live in this strange parallel universe inhabited by the west coast media and The Rangers so we maybe have to look through the trees to see the wood.

At this time Green is innocent of any charges and has the right to defend himself to the best of his ability. His contract says he does not have to bankrupt himself doing so and The Rangers will have to cough up for the time being. It is not his fault if they had no insurance.

If he is found guilty I would assume The Rangers could sue him for the costs but until then.............

BTW I hate how the msm portray the old club as victims of the big bad taxman they were not found innocent of all charges. It is not true.

"The club went into administration and subsequent forced liquidation by HMRC over a “phantom” £80million tax bill, The club were later cleared of having ever owed the taxman."

[dangermouse]

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Looking at this in the real world, rather than the strange world belonging to Sevco, it is not unreasonable for a senior employee or director to be protected in this way in case someone took them to court for decisions made whilst they were in charge. The allegations could be unrealistic so the accused must have the means to protect themselves by employing lawyers to defend them. As said above most firms would have legal cover for these instances.

However we live in this strange parallel universe inhabited by the west coast media and The Rangers so we maybe have to look through the trees to see the wood.

At this time Green is innocent of any charges and has the right to defend himself to the best of his ability. His contract says he does not have to bankrupt himself doing so and The Rangers will have to cough up for the time being. It is not his fault if they had no insurance.

If he is found guilty I would assume The Rangers could sue him for the costs but until then.............

BTW I hate how the msm portray the old club as victims of the big bad taxman they were not found innocent of all charges. It is not true.

"The club went into administration and subsequent forced liquidation by HMRC over a “phantom” £80million tax bill, The club were later cleared of having ever owed the taxman."

I thought it was non payment of VAT that caused the administration so they did owe the taxman

[AndyM_1875]

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I thought it was non payment of VAT that caused the administration so they did owe the taxman

Correct. They do owe the tax man both in respect of VAT and the Wee Tax Case which is a share option thing from 2000-2003 used against the contracts of two players. Minus HMRC's penalties in total they owe about £9m.

The BTC is HMRC chasing a precedent they can use to chase other Companies for backdated taxes although right now the Tax man is 0-2 down and it's not exactly looking hopeful for them.

[Lago]

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Yep. And Tom Farmer identified him as an absolute spoofer.
Bullet well and truly dodged.

We have a lot to thank Sir Tom Farmer for.

[Ozyhibby]

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We have a lot to thank Sir Tom Farmer for.

Aye, we're blessed to have Rod Petrie right enough.


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[AndyM_1875]

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Aye, we're blessed to have Rod Petrie right enough.


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Rod Petrie or David Low... Hmm.... the Tache or the Fantasist?

[Ozyhibby]

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Rod Petrie or David Low... Hmm.... the Tache or the Fantasist?

A grim choice right enough.


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[Lago]

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Aye, we're blessed to have Rod Petrie right enough.


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[jgl07]

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We have a lot to thank Sir Tom Farmer for.

He saw through Brian Kennedy as well.

Just in case you don't realise the escape that Hibs had look at Stockport County who he did take over. Back then they used to move between the second and third tier of English football. Now they are in the struggling in the sixth tier and having to rent their own ground.

[Ozyhibby]

https://johnjamessite.wordpress.com/...-with-rangers/


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[Ozyhibby]

http://www.philmacgiollabhain.ie/a-d...ba-multiverse/


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[jacomo]

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http://www.philmacgiollabhain.ie/a-d...ba-multiverse/


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Interesting gossip from both this radge and the Rangers guy, but only relevant to us if it causes a slump in results. It is just possible that a wee blip in form for The Rangers + cost cuts to 1st team squad facilities + failure to strengthen in January will cause them deeper problems. Here's hoping.

I've said elsewhere that I think our team will improve over the season. We've got competition for places, injured players to come back, and last term AS got the team looking stronger throughout the winter. In other words, we have to keep the faith.

[magpie1892]

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http://www.philmacgiollabhain.ie/a-d...ba-multiverse/

He self-describes as a journalist but doesn't seem to understand that no paper is going to print a story saying 'Sevco might go pop again'.