SFM Podcast #6: Dave King & Oldco

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JohnJames makes the following statement re Directors and Officers cover …

Comment on SFM Podcast #6: Dave King & Oldco by redlichtie.

JohnJames makes the following statement re Directors and Officers cover :

“As for insurance, this evidently was not purchased or maintained….”.

If this is in fact the case and at the same time the company directly indemnified CG, etc against legal costs that seems to have been an unwise if not reckless course of action.

I know nothing should surprise me about all this but such a failure to effect or maintan cover would be a stunner.

Without such cover the financial implications for RIFC/TRFC are potentially substantial and possibly terminal – what sort of guarantee(s) will Campbell Dallas now need to avoid them issuing a Going Concern notice?

This looks like being a most interesting training ground for Campbell Dallas auditors….

Scottish Football needs a strong Arbroath.

redlichtie Also Commented

SFM Podcast #6: Dave King & Oldco
zerotolerance1903 24th September 2015 at 12:41 pm #
scapaflow 24th September 2015 at 12:19 pm #
Zero, it was made very clear to me many years ago, that there was no defence to obeying illegal orders.
Which is the case for charges been brought against individuals for the actions of a company.
However, no allegations have yet been proven which is why we go through trials and such like.
My only point on this is that I don’t think it is necessarily a bad thing that a company would fund the defence of an officer of the company for their conduct whilst an officer of the company.
This was in response to your suggestion that this was a terrible precedent, whilst I think is neither precedent nor (necessarily) terrible.
I’m with ZT on this one. If officers of a company were not covered for lawsuits, etc they would not do anything or even agree to hold office! One innocent but wrong move could wipe them out financially.

That’s why D&O insurance is common.

I had experience though of one employee, working overseas, who had almost certainly been naughty but the facts were fairly murky at the time. Won’t bore you with the details but as part of his leaving settlement he sought some kind of indemnity from possible criminal charges in those foreign climes.

We were OK covering legal costs relating to acts carried out on behalf of the company but drew the line at covering criminal penalties. He would have been fired in such circumstances anyway if he had not already left our employ.

He very pragmatically skedaddled from the overseas location and that was the last I heard of him or any charges.

Scottish Football needs a strong Arbroath.

Recent Comments by redlichtie

Time for Scots Government to Take Bull by the Horns
“Dame Jessica Ennis-Hill to get 2011 world gold in London after Chernova decision
Dame Jessica Ennis-Hill will receive her record-equalling third world heptathlon gold medal in a ceremony at the World Championships in London – six years after the event in Daegu.
The 2011 result was confirmed on Tuesday after the Court of Arbitration for Sport (Cas) dismissed Tatyana Chernova’s blood doping ban appeal.
Chernova beat the Briton to gold in Daegu but her results are now annulled.
The Russian also won bronze medals at the 2008 and 2012 Olympics.
The 29-year-old has been told she must give up all three medals after twice testing positive when her anti-doping samples were later re-analysed. Her biological passport has also revealed years of blood doping.
World governing body the IAAF first stripped Chernova of her Daegu gold in November 2016 but the medal could not be reallocated until the appeal to Cas had been heard.
Several ceremonies to reallocate medals are expected to be held at the London World Championships, which runs from August 4-13.
Ennis-Hill, 31, announced her retirement from athletics in October but will now be able to celebrate her third world heptathlon title in front of a home crowd.”
                                 *                         *                       *
Other sports do the right thing – why not Scottish Football?
Scottish Football needs a strong Arbroath.

Time for Scots Government to Take Bull by the Horns
I apologise if someone else has already stated this, having been out of the loop for some time, but am I correct in now understanding that what I had assumed were five stars on the TRFC’s logo are in fact five asterisks?

A continuing and highly visible reminder of their cheating?

Scottish Football needs a strong Arbroath.

Time for Scots Government to Take Bull by the Horns
“In a statement issued to the Press Association, Sir David said: “I am hugely disappointed that the Supreme Court has upheld the decision of the Court of Session, reversing the decisions of the specialist tax First Tier Tribunal and the Upper Tribunal in this matter.
“The decision runs counter to the legal advice which was consistently provided to Rangers Football Club, that on the basis of the law and legal precedent at the time, the contributions made to the trust were not earnings and should not be taxed as such.
 “It should be emphasised that there have been no allegations made by HMRC or any of the courts that the club was involved in tax evasion, which is a criminal offence.
“The decision will be greeted with dismay by the ordinary creditors of the club, many of which are small businesses, who will now receive a much lower distribution in the liquidation of the club, which occurred during the ownership of Craig Whyte, than may otherwise have been the case.
“I have not had the opportunity to discuss the decision in detail with Tax Counsel, but will do so, particularly in light of proposed legislation, which will alter the tax position applying to loans made by trusts to employees. Once the impact has been assessed, a further statement will be issued.”
Just to emphasise, apart from ‘it wisnae me’, SDM says that there was a “liquidation of the club”.
Scottish Football needs a strong Arbroath.

Look Back to Look Forward
I’ve seen this phrase used by RTC and The Clumpany……””Rangers died because they lied”.

I’ve often thought that we should find some short soundbite to use whenever discussion with third parties turned to the Oldco/Newco situation. Especially those hard of thinking types…

I know that it does not cover all that went on but if we could start getting this soundbite into such discussions, including with the media, maybe that would help get the truth over.

Scottish Football needs a strong Arbroath.

Look Back to Look Forward
Slim et al….

I wonder which company/club issued these side letters? To my mind they may still have legal standing in terms of the indemnity contained therein.

If the issuing party is still in existence the player(s) may well have a claim on whatever assets or funds that are still lying aound.

Is that one of the reasons BDO sought leave to appeal? I puzzled over their apparent intention to spend dwindling money from the creditors pot.

Will the proposed tightening of legislation now force them to actually make such an appeal? Were they aware of upcoming changes to legislation?

Does that make an appeal now less likely?

This is potentially complicated stuff indeed.

Imagine the outcry if, after the upcoming court cases, BDO somehow finds itself the owner of Ibrox and MP with the assets then frozen as dozens of ex-players jointly try to force a sale so that they can cash in the RFC (IL) indemnity!

Scottish Football needs a strong Leicester (as an example of what can be done against the game’s big shots).

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