Port Vale: Deakin and Miller 'can use shares in EGM vote'
PORT Vale directors Peter Miller and Perry Deakin can use their nil-paid shares to vote at next month's extraordinary general meeting, the club's acting chairman, Mike Lloyd, claimed last night.
Miller and Deakin intimated they had bought blocks of shares in the club worth £250,000 and £100,000 respectively when they sought election to the club's board, but it later emerged they had not invested a single penny.
That, along with other revelations about the running of the club, prompted fans to ask the Vale board to call an extraordinary general meeting to give shareholders the chance to remove the club's four-man regime.
Now it appears the £350,000 stake could be allowed to be moved in favour of retaining members of the current board.
When asked during an interview by BBC Radio Stoke whether the nil-paid shares had now been bought, Lloyd said: "That is a legal matter so I can't comment."
But he added: "You can legally vote with shares whether they are paid for or not. That is 100 per cent legal under company law.
"It doesn't seem right, but I can assure you that if a company issues nil-paid shares to you then they will have voting rights.
"But there's an assumption that those shares have not been paid for. I can't comment on that – but they could have been paid for."
Lloyd also believes the £150,000 block of nil-paid shares issued to U.S. firm Blue Sky International before their investment deal with the club collapsed could also be used at the EGM.
The meeting is due to be convened in early March, when fans want Lloyd and Miller voted off the board.
The club's other directors, Deakin and Glenn Oliver, are due to stand down at the club's March 13 annual meeting, but could have to have been replaced by the time of the EGM.
Miller is still serving as a director from his current base in America.
Lloyd insists he must continue in the role for now as the club needs at least four directors to enable it to function legally.
"Peter is still in America, so any board meetings are done using teleconferencing calls," added Lloyd. "He has to be involved – if he wasn't we couldn't do any business."
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by Clayhanger
Thursday, February 09 2012, 11:12PM
“laythevale is very quiet on this subject perhaps the board goons are starting to panic”
by ValiantFosse
Thursday, February 09 2012, 5:19PM
“dandruff1960, Administration is better than liquidation, but until the financial and contractual situation within the club is known, nobody can be sure that Admin is the best option. But if the future income streams have been mainly stripped out, there may not be much choice.”
by dandruff1960
Thursday, February 09 2012, 3:59PM
“To say that administration is better than anything at all, even the present lot, is madness. Revenge is no substitute for survival.”
by ValiantFosse
Thursday, February 09 2012, 3:55PM
“Dandruff1960, They could be breaking company law, it is being investigated.”
by warrenpark
Thursday, February 09 2012, 2:42PM
“I am hoping that the company has not been defrauded by using or borrowing funds to facilitate a loan to Deakin and Miller to pay for the shares and that the deal with Blue Sky has not been progressed in any such way as to create a liability.
To me Miller and Deakin, and whoever sent out communication to shareholders, falsely represented themselves as having paid for shares. A shareholder should complain that they were misled and that this has led to financial gain - certainlt for Miller. That would form the basis of a case of fraud by false representation. I presume this has been looked in to and either the wheels move slowly, evidence hasn't been obtained or there is a reason why the allegation can't be sustained.
Nonetheless, the shares must be paid for if there is a legal contract in the form of a binding promise to pay. The other directors should ensure the club's interests are represented and recover the debt. Benefit has been obtained by serving on the board and Miller being paid as chair. If the shares are further used in self interest at an EGM that reinforces the duty of the directors, including those who owe the money to pay, and to my mind they commit fraud by misuse of office if they don't.
These people need to pay for their investment and step down. If they do so, they may get some of their money back with other shareholders through the sale of the club. If they don't the anger amongst fans is such that the non purchase of season tickets will finish the club off because enough fans now see administration as better than the current board (and you have to be bad in every respect to have reached that low) and even those who don't think that way have had enough of league 2 football and don't want to watch week after week. A collpase in season ticket sales is likely. Enogh is enough.”
by bilko31
Thursday, February 09 2012, 11:58AM
“If the Board use the unpaid shares to retain power at the EGM there will be uproar on a grand scale.I would advise them not to tread that path or to beef up their security goons.”
by dandruff1960
Wednesday, February 08 2012, 11:36PM
“ValiantFosse : What law do you think they would be breaking?”
by PompeyValiant
Wednesday, February 08 2012, 10:54PM
“We have to ask ourselves "Why are they putting themselves through this?"
I suspect they are simply desperate for TIME - not for the clubs benefit but for their own personal financial salvations.
I keep wondering about the personal financial impact that administration will have on the members of the Board. Deakin gave us a glimpse back in December , when he was reported as saying "Just before June's Extraordinary General Meeting we also paid back the brewery loan (which stood at £77,128 in the last set of club accounts), because directors still held personal guarantees".
If they still have other personal guarantees against them (for loans / services / bills / rent etc.), then they will be in deep trouble when the club goes into admin. So they must have time - to find cash to pay off these commitments.
That's my bet anyway!”
by ValiantFosse
Wednesday, February 08 2012, 8:49PM
“LaytheVale, not many early birds for Admin tickets.”
by laythevale
Wednesday, February 08 2012, 8:35PM
“When does the Early Bird Season Ticket offer start? I thought we needed the money. Don't tell me the printers haven't been paid.....
250 notes burning a hole in my pocket.”