Chairman’s Update
Regarding the report in the Luton News on Wednesday 30th January, I am pleased to clarify the position regarding the 1% shareholding in the Club for the Trust.
We have been aware, from the outset, of the proposed shareholding that will be gifted to the Trust. We fully supported, and still fully support, the LTFC2020 bid based on this shareholding, as do all the other supporters’ groups.
As part of their proposals, the Trust will also be able to purchase up to a further 9% of shares, which allows Trust members and fans to take part in the ownership of the Club.
The most important thing is that the 1% being gifted to us gives us virtually the same rights as our previous 10% share that was negotiated with the Bill Tomlins Consortium four years ago. We will continue to have the right to see accounts, board minutes, directors’ contracts and also the registers of shareholders, charges and debentures.
Therefore, I can confirm that the powers we used to expose the mismanagement of the Club last year will still be completely at our disposal, in the unlikely event that they are required in the future.
The ONLY real power we lose is the right to ‘request an Annual General Meeting (AGM)’. Bearing in mind that the Club never had an AGM in the past four years (and would have probably refused one even if requested!), the fact that we have access, when we require it, to financial information and board minutes means this is really not an important issue. In addition, in the spirit of openness and transparency that all supporters’ groups believe is essential, LTFC2020 have committed to all shareholders an AGM PLUS quarterly updates. We have never had this level of detail before from any previous owners. As you will see, the loss of the power to call an AGM is not something of concern as it has been replaced by far better information.
The difference between 1% and 10% in terms of voting also makes very little difference. In either case, we could be outvoted. In legal terms, both 1% and 10% are classed as a ‘minority shareholding’ and the Companies Act 2005 gives us the same legal protection no matter what stake we have between 1% and 24%.
It is sad to report that recently there have been a number of futile attempts and rumours designed to derail the LTFC2020 bid. For what reason we do not know as the important issue here is the survival and future of our football club and not rumours and politics that are designed to confuse supporters. I am very pleased that the LTFC2020 bid team are not concerned by these rumours and tactics as they must continue to focus on securing control of the Club and planning for its future and in this we totally support them.
From what we have seen, LTFC2020 have already invested more money in the football club than the combined investment of the entire management of the previous four years. Bearing in mind that LTFC2020 are not in control of the Club at present and, therefore, could lose all of this money, this is a huge commitment that no previous management of the past four years was prepared to make.
All supporters’ groups are being kept appraised of developments and we have constantly called for fans to remain calm and patient. This is not a short process and every avenue must be explored to get the best outcome. We must remember that the crisis in which we find ourselves is due to previous (mis)management and not LTFC2020 or the Administrator. We faced extinction so it is not a quick process to put things right. Also, LTFC2020 are not in control of the Club and will not be until some time in the spring. The issues are so deep that it will take time to return to a financially stable position. We are very happy, and are completely satisfied, that the best possible job is being done on our behalf.
I am delighted that LTFC2020 have put themselves in this position to secure the future of our football club with the Trust as a shareholder and the fantastic work that they are doing to ensure the best outcome for us all.
Cheers
Liam