The Share Issue - An Explanation!

By: Bill Osborne
Date: 30/05/2003

FROM comments made on the Fishy MB and the emails I have received, there appears to be some misunderstanding about the GTFC share issue and what fans are actually getting for their money.

To alleviate the fears of some, and to inform those who are not quite clear about the share issue, the following is an explanation of the share issue and the power it gives you as a shareholder.

Grimsby Town Football Club has a share issue of 636,000 shares, 363,000 have recently been released for sale by virtue of 75% of shareholders voting in favour of the proposal to issue those shares.

The only shares GTFC have are what are called 'ordinary shares' which carry full voting rights to the holder.

The Shares:

The shares on offer are the same type of shares held by Mr Fenty and the other directors of the club. (Some people think they are different in some way).

The shares are being offered @ £1 each with a minimum order of 100 which = £100.00

The shares when issued, may come to the buyer in blocks of 50, 100 or individual shares. This makes no difference whatsoever to the shareholder. 2 blocks of 50 still equal 100 shares and 100 votes.

Voting:

When a meeting of the shareholders is called, either via the AGM (Annual General Meeting) or an EGM (Extraordinary General Meeting) each shareholder is allocated one vote for each share they hold.

A person who has been issued with two blocks of 50 or one block of 100 still has 100 votes.

If a vote is called for by a show of hands, it matters not if you own a million shares, you only get one vote.

If a poll is called for, each person voting has as many votes as they hold shares. Therefore a person holding 100 shares gets 100 votes. Each share is counted in a poll.

Everyone's shares are the same. There are no differences. Mr Fenty's shares are the same as yours and have the same voting rights.

No one is getting ripped off! No one is being treated differently to any other shareholder. The shares being offered are good value at £1 each and it is pleasing to see fans and supporters being given the opportunity to gain some equity in the club that they support and gaining the right to have a say in the running of the club.

Disregard all the comments and rumours you hear relating to the shares and how many votes you get. The facts are, you get 1 vote for each £1 you spend on shares. The issue in blocks of 50 and 100 is irrelevant. You still get 100 shares and 100 votes.

I hope that clears up any misunderstanding you might have about the share issue. Having said that, all that remains to be done is to get your applications in ASAP, before they are sold out!

Proxies:

If, for any reason, you cannot attend a meeting of shareholders, you can appoint a proxy. That is, you can nominate someone to represent you at the meeting and vote on your behalf. That person does not have to be a shareholder in his or her own right.

But a proxy who is not also a shareholder, cannot take part in the business being discussed, He or she cannot make comments, ask questions or make proposals. He or she can only vote on your behalf.

You can instruct a proxy to vote according to your instructions or, allow them to vote as they please.

In appointing a proxy, you must do so on a prescribed form available from the Club, which has to be lodged within a certain time before the meeting. That time period is usually on the notice of meeting.

Fan Power

You please yourself, but if the fans and supporters want to have some leverage in meetings and have a real say in the running of the club, then they must stand together and, in my opinion, the only way they can do that presently is by allocating their proxies to the Grimsby Town Supporters Trust.

The more shares the trust can use, the more power they have. Giving them your proxy does not affect the ownership of the shares. You are still the owner and can cancel the proxy at any time.

Grimsby Town fans have never had a better opportunity than this to have a say in the club, and giving the trust their proxies will give them a real voice! But that is your choice. Make your own decisions!

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