Untenable president, repay your loans, Gratuitous Alienation

1192

HMRC have confirmed their actions today leave open “potential investigation and pursuit of possible claims against those responsible for the company’s financial affairs in recent years”.

Chances are, HMRC will investigate the actions of SFA president, Campbell Ogilvie, more thoroughly than the investigation carried out by the Association which allowed their chief executive, Stewart Regan, to tell the media that:

“We are all aware of businesses being run where you have one owner and operator running the club and a number of directors sitting below. The way this process has been managed, a lot of this correspondence was done much higher up the chain than Campbell Ogilvie.”

Stewart (if I can be familiar), you’re better than this.  Try reading this story one page ahead, figure out where this one is going and start acting accordingly.  Of course, President What-school-did-you-go-to then told Scotland on Sunday:

“I might have signed some documents from time to time”.

Mr Regan had better make sure he knows what Mr Ogilvie signed, and I recommend he doesn’t relay exclusively on Mr Ogilvie’s memory.

Untenable

“Those responsible for the company’s financial affairs in recent years” includes Mr Ogilvie throughout his period as a director of Rangers.  His position has been untenable for months and his continuing presence at the top of the Scottish FA only further contaminates those who claim otherwise.

The former directors of Rangers will not be the only ones alarmed at this development, recipients of EBTs (including the directors, who will have a second matter to consider) have reason to be concerned.

Not only do Her Majesty’s officers want any potential wrongdoing investigated, they also want their money.

Rangers EBTs were a loan.  HMRC will tell recipients of this loan that their side letters (you better believe they’ll all find those side letters now) are not worth the paper they’re written on.  If the money was indeed a loan, a demand for repayment will be made.  If this is disputed, you can expect to hear the phrase Gratuitous Alienation to enter the lexicon soon.  Gratuitous Alienation is the Scots legal term describing when property (or cash) is transferred to another party without any, or adequate, consideration.

I hear HMRC have all their ducks lined up for this one.

Internecine strife doesn’t begin to describe how things will end up.

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  1. Hoops_Neil_Lennon_diditagain on

    Important note in Alex Thompsons blog.

     

     

    6. Despite the Green consortium’s lofty statements about buying the club’s assets, there is no guarantee that they will in fact be bought up as a job lot. There is no guarantee about simply playing on at Ibrox. There are, as thing

     

    s stand, few guarantees in terms of the asset sale at all.

     

     

    Could these be sold for Supermarkets and housing to the highest bidder and not as a 5.5M job lot to Green.

  2. If Green gets the assets for £5.5m surely thats a stitch up with him and the admins???

  3. Paul67:

     

     

    I first heard the word internecine at approx.16:40 from a knowledgable friend. He explained the principal of what it meant and the implications it could mean for RFC (IA) including possibly Campbell Ogilvie who is innocent until proven guilty…:)

     

     

    The financial side of things have taken care of themselves. Now to the bigger story, which is the footballing one.

     

     

    I predict that the SPL/SFA, sorry I will reword…SFA/SPL will have no option but to strip them of their titles and to kick them into touch.

     

     

    1872-2012 RIP…

     

     

    I smell liquid…

     

     

    However, the story is not over not by a long chalk.

     

     

    To quote Neil Francis Lennon…

     

     

    This is not the end; this is just the beginning…

     

     

    Keep the Faith!

     

     

    Hail Hail!

  4. Everything up until now was known. The outcome was never in doubt. The facts were always available to show that all paths led to today, no matter what the chatter said.

     

     

    From here on in it is uncharted waters.

     

     

    The battle really begins today.

  5. Alex Thomson

     

    Today’s the day the taxman, in the shape of

     

    HMRC, said not only will he not be walking

     

    away from Rangers, but that they, the HMRC,

     

    “are the people”. And the people not only

     

    want their money back from this

     

    catastrophically mismanaged “football

     

    club”, but now they want to come after the

     

    men who reduced the once proud name of

     

    Ibrox to a pathetic byword for toxic

     

    governance.

     

    And that is the real story.

     

    It is not often that you are on holiday and

     

    find your plans are interrupted by the Voice

     

    of the Taxman, and it is hardly ever anything

     

    but bad news, I would imagine. But I have

     

    to report barely concealed joy and

     

    enthusiasm from my contact in HMRC who

     

    once memorably told me, referring to

     

    Rangers Football Club: “Remember our

     

    Eleventh Commandment, Alex – Thou Shalt

     

    Not Get Away With It.”

     

    Not the kind of language HMRC regularly

     

    employs, but Rangers was always going to

     

    be big for them. Very big. An example. A

     

    test case. A litmus test. Take your image,

     

    but you get their drift.

     

    So now it is all about a proper investigation.

     

    Bluntly, a CVA (company voluntary

     

    arrangement) would have allowed far too

     

    much to be simply swept under the carpet.

     

    Years of evidence, allegations, arguably an

     

    entire Ibrox culture of funny money and

     

    living beyond everyone’s means, can, as the

     

    HMRC put it this morning “now be properly

     

    investigated – and let me say there is no

     

    way we could have done that under any

     

    proposed CVA deal”.

     

    When the CVA was proposed down at

     

    Portsmouth FC, the taxman was promised

     

    all kinds of phone number figures from any

     

    amount of whacky offshore accounts etc and

     

    guess what? Yes – they got a fraction of

     

    nowt out of it, in the end.

     

    They were not minded at all to go down the

     

    same route this time.

     

    In short, this is a warrant for the proper,

     

    detailed, lengthy and forensic investigation

     

    of just what David Murray, and to some

     

    extent Craig Whyte, were doing at Rangers

     

    and – yes – all those men who walked away

     

    from the club they professed to cherish and

     

    love and have run from any serious kind of

     

    questions ever since in the celebrated style

     

    of Glasgow football, largely unencumbered

     

    by any pursuit and awkward questions from

     

    the compliant press of that city who cannot

     

    handle the idea that Rangers was after so

     

    many years too corrupted to survive

     

    liquidation.

     

    Well, now it is time to get used to the truth

     

    and reality so widely predicted and

     

    investigated online and by those notable

     

    journalists in broadcasting and papers

     

    around Glasgow who bucked the trend. They

     

    can all hold their heads high today after all

     

    the years of abuse.

     

    The succulent lamb just went off. The

     

    stench will hang around Rangers for years to

     

    come.

     

    So a CVL (creditors’ voluntary liquidation) is,

     

    the HMRC believes, a way of taking the

     

    gloves off, and getting to grips with, the

     

    former directors which a company voluntary

     

    arrangement (CVA) could never have done,

     

    in their view.

     

    Getting away with it just became very, very

     

    much more difficult for all the directors

     

    involved with Rangers over the past 15 years

     

    or so, and nobody – least of all Rangers

     

    fans – can possibly do anything but welcome

     

    that fact, whatever it means for the club.

     

    Today HMRC said this: “A CVL is the

     

    statutory process whereby a company’s

     

    assets are realised by an insolvency

     

    practitioner (the liquidator – BDO in this

     

    case it seems) and paid out to its creditors.

     

    If there is not enough to pay creditors in full

     

    after the costs of the liquidation, they will

     

    receive only a proportion of their claims.

     

    The directors and employees of the

     

    company play no part in the liquidation.”

     

    Moreover, the actions across recent months

     

    of administrators Duff & Phelps might well

     

    now come under scrutiny. Given some of the

     

    more bizarre twists and turns, it would be

     

    astonishing if they did not.

     

    The HMRC again: “Liquidators are required

     

    by regulatory best practice to undertake a

     

    certain minimum level of investigation into

     

    the actions of the directors of the company

     

    in the run up to its liquidation. These

     

    investigations may reveal legal actions which

     

    only liquidators can take whereby directors

     

    can be ordered by the court to compensate

     

    the company in respect of any wrongdoings

     

    they may have committed during the pre-

     

    liquidation period. If the liquidator

     

    considers it economic to pursue such

     

    actions he will do so. ”

     

    Not only that. There are wide powers to

     

    investigate and take actions against

     

    directors including –

     

    – Wrongful trading: directors can be

     

    ordered to make a payment to the company

     

    if they continue incurring debt at a time they

     

    should reasonably have known the company

     

    could not avoid going into liquidation.

     

    – Transaction at an undervalue: where a

     

    director has caused an asset to be

     

    transferred to a connected party for less

     

    than its true value at a time when the

     

    company was insolvent, the asset can be

     

    transferred back to the company or the

     

    person benefitting can be ordered to

     

    compensate the company. An example

     

    would be a director buying his own

     

    company car for £1.

     

    – Preference: where a director has paid

     

    someone with the intention of making them

     

    better off in the event of a liquidation than

     

    they would otherwise have been then they

     

    can be ordered to pay compensation to the

     

    company. An example would be a director

     

    causing the company to pay a debt that he

     

    had personally guaranteed so he would not

     

    have to meet that debt himself when the

     

    company goes into liquidation.

     

    – Misfeasance: this covers a wide variety of

     

    breaches of duty by directors. Duties of

     

    directors are set out in the companies act

     

    and include such matters as putting the

     

    company’s interests first, and not taking

     

    account of the director’s personal interests.

     

    And just to top it off, under the liquidation

     

    the liquidators also now have all kinds of

     

    powers to get information from directors

     

    and others with inside knowledge of the

     

    football club, and they can use the courts to

     

    do it if they have to.

     

    Or to put it another way, Rangers directors

     

    of the recent past can run from the

     

    questions, if they like – but hiding would be

     

    futile.

     

    So the HMRC are pretty much where they

     

    want to be in all this. And anyone who

     

    believes that if you try to thwart the taxman,

     

    they should come after you, will no doubt

     

    agree.

     

    Questions therefore for several Scottish

     

    MSPs and First Minister Alex Salmond to

     

    answer about their blatant political

     

    interference with the HMRC – several MSPs

     

    blatantly and publicly attempting to

     

    pressure the taxman away from any

     

    liquidation. I know from sources within

     

    HMRC that basically all they managed to

     

    achieve was to antagonise the taxman who

     

    simply wanted everyone to play by the rules

     

    and for there to be no special case, no

     

    exceptions and no special pleadings.

     

    At the time when Channel 4 News dared

     

    question whether or not their actions might

     

    not be counter-productive, given that

     

    Holyrood has no powers over HMRC, the

     

    hue and cry from said MSPs and Mr

     

    Salmond’s minders was long and loud. I

     

    wonder if they are re-examining their

     

    actions today?

     

    And then there’s the football side of things,

     

    for Rangers did also masquerade as a

     

    football club during the long years of

     

    apparently being a casino. In immediate

     

    terms –

     

    1. Rangers will be banned from European

     

    competition for three years.

     

    2. Most of their players can and will leave in

     

    the coming weeks often – many having no

     

    doubt had enough of doing their bit on

     

    wage cuts of up to 75 per cent.

     

    3. The club still faces the Big Tax Case

     

    tribunal decision laughingly due “soon after

     

    Easter”, and on that the HMRC still have no

     

    news, this could see Rangers face a further

     

    tax bill of up to £70m in dues and penalties.

     

    4. The Scottish Premier League will soon

     

    run out of excuses to not report on its

     

    investigation into alleged wrongful player

     

    registration which, if the club is found guilty

     

    as charged, could see the club losing much

     

    of its silverware won over the past decade

     

    or so.t

     

    5. The liquidation makes it even more

     

    difficult for both the Scottish Premier League

     

    and its appeal body the Scottish Football

     

    Association to readmit and license Rangers

     

    to play in the Scottish Premier League.

     

    6. Despite the Green consortium’s lofty

     

    statements about buying the club’s assets,

     

    there is no guarantee that they will in fact be

     

    bought up as a job lot. There is no

     

    guarantee about simply playing on at Ibrox.

     

    There are, as things stand, few guarantees in

     

    terms of the asset sale at all.

     

    It is hard to see any way forward with any

     

    kind of probity except starting a clean sheet

     

    at the foot of the Third Division in Scotland

     

    and playing their way back, thereby sending

     

    a message across the sporting world, at

     

    last, that some things matter more than

     

    money – even in football.

     

    And that is what many Rangers fans – for

     

    so long ignored in all this and the people

     

    most badly sold down the river by those

     

    who “managed” their club – want to see

     

    happen. To that extent they are the people,

     

    the people who matter, and, unlike all their

     

    directors, they did not walk away and they

     

    will not.

  6. Paul67,

     

     

    Greeting’s Oh Great Timlord,

     

     

    Alas this will be last transmission to you. Operation: Wetbear has been completed. The timverse is free. As discussed, 6 million potatos have been deposited in your garden.

     

     

    Until 2296 Great Timlord, when Operation: Moonbeamer commences, or unless I vacation in your timline again.

     

     

    To Infinity & Backwards!!!

     

     

    rotit j

  7. hoopeddreams on

    “Rangers to re-form after creditors’ deal is rejected”

     

     

    Yes, that’s the headline on the olllllllllllleeeeeeee BBC sport pages.

     

    And who has written up this heartwarming story? None other than our old friends –

     

    Alasdair Lamont and Chris McLaughlin.

     

     

    So they will be “re-forming”. Sounds a lot nicer than “becoming extinct”, that I’ll grant you. I have become increasingly disappointed by the BBC, especially the Shortbread variety. Their continual cheerleading is pathetic and an insult to true football fans.

     

     

    Meanwhile on twitter……….

     

     

    Alex Thomson is giving the huns laldy. It is quite breathtaking to compare his approach with the slavish devotion we tend to get in Scotland. Without a few journalists worthy of the name, and the likes of this blog, who knows what excesses those in charge of the marble staircase would have continued to enjoy.

  8. huns fc- love the queen but wont pay her on

    Dalziel on SSB there saying he was at Ibrokes and he met a hun who was crying, Did he film It on his phone, that would be great viewing on you tube.

     

     

    cheerioscumbagsCSC

  9. Am Ah the only wan..

     

     

    Who thinks…

     

     

    Say.. Noo, that B.D.O. has bin Summoned.. tae the table..

     

    and. Ah am Told that They ur wan o they Implacable, Incorruptible..Honest as Awe Get oot.. Companies…

     

     

    Whit wull happen if…

     

     

    A Wee Land Speculater shows up at thur Door. and Maks an

     

    Offer fur..

     

     

    The G.A. ‘s Training Grun?

     

     

    Offers.. SIX Million fur .. Murray Park. includin’ the auld Albion Race Track…?

     

     

    And . jis then anither Real Estate Speculator Shows up.. and offers.. Five Million fur Ibrox Stadium..?

     

     

    Could This Happen?

     

     

    And..

     

    If it did..

     

     

    His Mr. Greenjeans factored this Possibility ..into his grandiose Plans?

     

     

    There is Nae end tae the Possibilities that Kin and Probably wull Ensue Regarding. the G.A.’s Assets being pit oan the Choppin’ Block..

     

     

    Fur. Efter awe. In a Liquidation Sale..

     

     

    Everythin and Anythin. is Good tae go

     

     

    And whit is tae stoap.. those Assets bein’ Sold Aff..

     

     

    PIECEMEAL???

     

     

     

     

    Folk could show up. bidding fur the Double Glazed windaes in the Ibrox Offices.. The Coffee Machine? The Pens and Pencils.. The Carpets?

     

     

    the Marble Stair- Case?

     

     

    The Trophies?

     

     

    Ah suppose there may be some Scrap metal Value that could be Found In Those?

     

     

    Like Ah said..

     

     

    the Possibilities ur Endless..

     

     

    Hmmmmmmmmm…

     

     

    Ah am so lookin’ forward tae see if any of

     

     

    MA . Wild Speculations…

     

     

    Dae Come tae Pass..

     

     

    Ah hope they Dae.

     

     

    Kojo

     

    Still, Laughin’

  10. !!Bada Bing!! on

    VP-Goram saying clubs should be careful what they wish for,Keevins trots out the Sky deal blah,blah ,blah

  11. INFORMATION ON CREDITORS’ AND SHAREHOLDERS’ MEETINGS

     

     

    The creditors’ and shareholders’ meetings will still take place at Ibrox on Thursday but the results of those meetings will now be entirely academic given HMRC’s decision.

     

     

    There will be two separate meetings taking place on Thursday, as follows:

     

    Who can Attend

     

     

    • All Creditors of the Company are entitled to attend this meeting.

     

    • Letters have been issued to all creditors known to the Joint Administrators, providing formal written Notice of the Meetings.

     

    • The known creditors consist solely of trade suppliers and those debenture holders who have agreed to forfeit the benefits granted under their debenture(s).

     

    • Season Ticket Holders are no longer creditors of the Company following the completion of the 2011/12 season.

     

     

    To lodge your claim

     

     

    If you have already completed a Statement of Claim form, then you need do nothing further to lodge a claim.

     

     

    If not already done so, please complete a Statement of Claim form, which can be found on the Rangers website, and return the form to the Joint Administrators by email to this address or by post to Duff & Phelps Ltd, 43-45 Portman Square, London, W1H 6LY.

     

     

    To vote at the meeting without attendance

     

     

    If you wish to cast a vote as a creditor at the meeting of creditors, but do not wish to attend, please complete and return the proxy from (which can be found on the Rangers website, within the CVA document). You may appoint another person to vote on your behalf or you may appoint the “chairman of the meeting” who will cast your vote as you indicate on the form.

     

     

    To attend and vote at the meeting

     

     

    If you wish to attend and vote at the meeting, you will need to:

     

     

    • Ensure your statement of claim form has been submitted, as noted above.

     

    • If the creditor is an individual will need to bring proof of identification and authority to attend the meeting.

     

    • If the creditor is a company, the person attending will need to bring a proxy from signed on behalf of the company, proof that the individual is entitled to represent the company

     

    • If the creditor is a Debenture holder, then in addition to the above the debenture certificate must also be provided.

     

     

    Outcome of the meeting

     

     

    • Given that HMRC are the largest single creditor and they have decided to reject the proposals, the outcome of the meeting is entirely academic

     

    • Creditors may therefore deem it unnecessary to attend the meeting, which will now be no more than a formality

     

     

    Shareholders Meeting – 13.00

     

     

    The meeting is being called to satisfy the provisions of the Insolvency Act 1986. The sole business of the meeting is to vote on a single resolution. No other business will be conducted, no questions will be taken and therefore given the decision by HMRC to reject the proposal, it is expected that the meeting will last no longer than five minutes. If the creditors’ meeting rejects the CVA proposal, then this will bind the shareholders whether or not the meeting of shareholders approves the CVA (subject to a shareholder’s right to apply to court under section 4A(4) of the Insolvency Act 1986).

     

     

    Who can attend

     

     

    • All shareholders of the Company are entitled to vote at the meeting of shareholders.

     

    • If you do wish to attend the meeting of shareholders in person: Please call the Ibrox Stadium ticket office on 0871 702 1972 (option 8) to apply for a Meeting Ticket.

     

     

    What documentation is required

     

     

    In order to access the meeting you must bring with you:

     

     

    • Your Meeting Ticket;

     

    • Your share certificate;

     

    • Proof of identification;

     

    • Access will be denied to persons who are not in possession of each of these items.

     

     

    Outcome of the meeting

     

     

    • Given that HMRC are the largest single creditor and they have decided to reject the proposals, the outcome of both meetings is entirely academic

     

    • Shareholders may therefore deem it unnecessary to attend the meeting, which will now be no more than a formality

  12. Four boys had a dream

     

    To start up a football team

     

    But they had no money, no kit, not even a ball

     

    But they carried on

     

     

    140 years on they appear to have come full circle…..

  13. FROM RTC

     

     

    The announcement that HMRC would oppose the CVA proposal for rescuing Rangers FC is just a few hours old, and I thought that a quick post was due. However, I do not have any new information. I just wanted to move this blog-page along.

     

     

    As it starts to sink in that The Rangers Football Club plc is now destined to end in corporate failure and liquidation, the questions are coming thick and fast as to what happens next.

     

     

    The simplest answer is that there are too many permutations to provide a certain path forward. HMRC had previously indicated that they would want Duff & Phelps replaced by BDO as liquidators. I expect that they will want ‘clean hands’ from this point on and that there will be fresh faces atop the marble staircase within a few days. However, it is possible that the liquidators will want to proceed with an asset sale to Green. Other bidders may emerge (or reemerge).

     

     

    Given the tiny amounts that would be raised in a public fire-sale, it does appear that an asset sale to a newco is almost certain. So a new organisation purporting to represent the legacy of The Rangers Football Club plc will emerge. However, if they are to be playing in any league next season the asset sale will have to be unopposed. If there are legal challenges to a sale, we could see at least one season without any Rangers-type team.

     

     

    The focus will soon turn to the SFA and the SPL. The ruling bodies of professional football in Scotland have the responsibility to determine whether a newco attempting to transfer Rangers’ league ‘share’ and SFA membership will be allowed to join the top flight of the Scottish game- and if so- when. What must be clear is that any organisation that has bought another club’s share / membership must also face the punishments that awaited the old club. To allow a newco-Rangers to ditch its legacy responsibilities will be to set an expectation that others can do likewise. The battleground is now going to shift and we can expect a massive effort to convince us that an SPL without Rangers would be unbearable.

  14. !!Bada Bing!!

     

     

    Talking to hun in work this afternoon

     

    Me… that’s yooz liquidated.

     

    Hun..that’s yooz playing in league with no competion(obviously a little less eloquently)

     

    Me.. do you remember when you were cheating

     

    and winning the league every year and you were loving it? well that will be us without the cheating .

  15. •-:¦:-•** -:¦:- sparkleghirl :¦:-.•**• -:¦:-• on

    Haha! Green says it’s not over yet and to lobby our MPs to get HMRC to change their minds before Thursday!!!!!!!!

     

     

    Hahahahahahahahahahaaaaaaaaaaaa!

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