SHAREHOLDERS in pre-takeover Barnsley FC could press for a government probe into the conduct of former directors.
Former shareholders want answers from Barnsley board
SHAREHOLDERS in pre-takeover Barnsley FC could press for a government probe into the conduct of former directors.
Barnsley businessman Peter Jones is balloting shareholders and top of the list of eight options is: "To request the DTI (Department of Trade and Industry) to conduct an investigation into the actions of directors prior to October 3."
Barnsley went into administration on October 3.
Jones said today that a key issue was shareholders being kept in the dark. "A lot of us never knew there was a problem until the announcement of administration."
In the letter, Jones, who chaired the last informal meeting of shareholders on December 12, says the DTI could investigate providing, "the company had not been liquidated and that they (DTI) would require a submission showing at least some preliminary evidence or suggestion of malpractice to proceed."
The letter adds that if there is a case against the board under chairman John Dennis, "the DTI would be responsible for imposing a penalty for any proven failure, the ultimate being disqualification as a director of any company. However shareholders would be in a supported position, and could proceed, if they so wished, to legally challenge the directors for financial compensation in the civil courts."
The adminstrators, Robson Rhodes, could also come under scrutiny. In the letter shareholders are being asked to authorise a request to Robson Rhodes "to reveal full details of offers received for the club and to explain why the full value of the shareholder funds as stated in their balance sheet of October 3 has not been realised."
According to Robson Rhodes figures, the shareholder funds stood at some £4.7m as the company went into administration, Jones states.
He continues: "In respect of the current situation at the club it is my view, and that of others, that the present owner bought the club legally through the administration system and while there may be faults in that system and shareholders may have their own private concerns, there is little we can do to challenge the legality of the purchase."
Shareholders are being given a week to respond to the Jones' letter.
Barnsley went into administration on October 3.
Jones said today that a key issue was shareholders being kept in the dark. "A lot of us never knew there was a problem until the announcement of administration."
In the letter, Jones, who chaired the last informal meeting of shareholders on December 12, says the DTI could investigate providing, "the company had not been liquidated and that they (DTI) would require a submission showing at least some preliminary evidence or suggestion of malpractice to proceed."
The letter adds that if there is a case against the board under chairman John Dennis, "the DTI would be responsible for imposing a penalty for any proven failure, the ultimate being disqualification as a director of any company. However shareholders would be in a supported position, and could proceed, if they so wished, to legally challenge the directors for financial compensation in the civil courts."
The adminstrators, Robson Rhodes, could also come under scrutiny. In the letter shareholders are being asked to authorise a request to Robson Rhodes "to reveal full details of offers received for the club and to explain why the full value of the shareholder funds as stated in their balance sheet of October 3 has not been realised."
According to Robson Rhodes figures, the shareholder funds stood at some £4.7m as the company went into administration, Jones states.
He continues: "In respect of the current situation at the club it is my view, and that of others, that the present owner bought the club legally through the administration system and while there may be faults in that system and shareholders may have their own private concerns, there is little we can do to challenge the legality of the purchase."
Shareholders are being given a week to respond to the Jones' letter.