Boardroom struggles at Rangers set to move into the courts
The struggle to control the Rangers boardroom looks set to move into the courts.
Last Updated: 04/10/13 6:13pm
In an announcement to the London Stock Exchange, it said former chairman Malcolm Murray, and Paul Murray, a director of the previous administration, had filed a notice with the Scottish Courts.
They are looking for the courts to order a notice, to allow details of any proposed vote be distributed to shareholders. This hearing is expected to go before the Court of Session in Edinburgh.
A group of shareholders, who are concerned with the way Rangers is being run, were unhappy the club dismissed a request for a vote to install Paul and Malcolm Murray, along with Scott Murdoch and Alex Wilson, as directors.
The statement announced the request, which follows months of wrangling over proposed boardroom changes, was received from shareholders representing 5.03% of voting rights of the company.
The board claimed some of those notices had not been validly executed while it had been unable to 'properly validate' the remaining notices.
The statement continued: "The board therefore confirms that the notices are not valid.
"The board further notes that on 4 October 2013 the company received notice of a petition filed in the Scottish Courts by Paul Murray, Malcolm Murray, Ian Cormack, John Graham and Colin Howell representing 0.71% of the voting rights of the company.
"The petition requests an order to be granted by the court, inter alia, to require the company to circulate the notices to shareholders and not to hold the annual general meeting of the company for 2013 until such time as the Individual Shareholders have received 21 clear days of notice of any such annual general meeting and the notices have been circulated.
"The board offered to meet with the Notifying Shareholders to discuss their concerns but had not received a response. The board then received notice of the petition.
"Whilst the company intends to strongly resist the petition the board intends to take all possible steps to avoid unnecessary cost and disruption to the company."
Earlier this week, Rangers announced that the AGM will be held on October 24, following the publication of annual results which revealed an operating loss of £14.4m.
These results sparked a public dispute between the board and Malcolm Murray, after chief executive Craig Mather and finance director Brian Stockbridge both accused the former chairman of being responsible for setting directors' pay, which has come under heavy criticism.
Mather's predecessor, Charles Green, received a £933,000 pay package for less than 12 months' work while finance director Stockbridge doubled his salary with a £200,000 bonus.
Murray insisted he had struggled to get directors' remuneration reduced during his time as chairman, which ended in April.
The board responded by accusing Murray of making 'grossly misleading
statements' but Murray claims: "I made a statement yesterday of factual accuracy.
"I'm disappointed by the aphorisms in the RFC official statement. But I have been encouraged by shareholders and fans alike to pursue this course of action and I will continue to do so."