The board of Sevco have agreed to an EGM on March 4 but issued a detailed warning about the possible appointment of Dave King.The EGM will be held in a London hotel.
Earlier this week Mr King called a media conference for the chosen few and passed off his convictions for 41 tax offences, each carrying prison terms.
Voting the South African based tyre-kicker into the blue room would create a number of concerns as the Sevco directors explained in their EGM announcement.
The statement to the Alternative Investment Market said: “The Directors have also been advised by the Company’s NOMAD that there could be a material adverse impact on the Company’s listing on AIM if David King, one of the proposed directors, is appointed to the Company’s Board. This is explained in more detail below but the Directors wish to draw Shareholders’ attention to the following public information about Mr King.
In August 2013 David King was convicted on 41 counts of breach of s.75 of the South African Income Tax Act. As part of the plea which led to those convictions he agreed to pay a sum in Rand which equates to approximately £40,000,000 in respect of unpaid tax, and either to pay a ?ne or accept a prison sentence. The Board understand that Mr King elected to pay the ?ne.”
The announcement then provided two links relating to Mr King’s tax convictions and highlighted a number of quotes including the one where Mr King is described as a glib and shameless liar.
The statement also revealed that directorships were offered to the Three Rebel Bears as well as a nominee from Mr King.
Turning to Mr King and Paul Murray’s involvement in the liquidation of Rangers the statement added: “The Board has also had legal advice that the “fit and proper” person requirement of article 10 of the Scottish Football Association’s articles of association would be likely to preclude both Paul Murray and David King from becoming a director of The Rangers Football Club Ltd (were they to seek to be elected to the board of that company).
“This is because the company which previously ran Rangers Football Club went into administration within the last five years and Mr King and Mr Murray were each a director of that company in that five year period.
“In addition to Mr King’s convictions in South Africa and the legal advice which the Board has received about the Scottish Football Association’s “fit and proper” person requirement, the Board has a further concern about Mr King which is that his appointment would be in breach of section 216 of the Insolvency Act 1986.
“Subject to certain limited exceptions, s.216 requires a person to obtain the leave of the Court before becoming a director of a company if, in the preceding five years, that person was a director of a company which went into liquidation whilst they were a director (or within one year of their ceasing to be a director) and the name of the new company of which they wish to be a director is the same as, or similar to, the name of the company which went into liquidation.
“This section applies to Mr King given he was, at the relevant time, a director of the company which previously owned the Rangers Football Club. This means that if he were to become a director of the Company without such leave then, unless he fell within one of the limited exceptions, he would be committing a criminal offence, punishable by imprisonment or a fine or both.”
A statement of reply is expected from Mr King’s PR team later today followed by various statements from angry supporters groups anxious for 15 minutes of air time and a blazer for Mr Murray.
