Liverpool Sale

OK I give up can someone tell me how the board of a company (Liverpool) can sell the business from under the owners?

Liverpool aren't a PLC and if they were the Yanks have all the stock, so how?

14:42 Wed 06th Oct 2010

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Trotbot	Best Answer Normally the owners of a business ensure they have the majority vote on the Board. However, as a condition of the refinancing, RBS insisted on appointing a Director, thereby meaning the owners do not have a majority vote, All Directors have a legal duty to do what is best for the business, which occasionally is not the same as the owners desires.
01:02 Thu 07th Oct 2010 Go To Best Answer

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redman41

Martin Broughton and the Board were appointed by Hicks and Gillette to find the best deal for everyone concerned. The Sale of the Club to New England Sports Ventures meets all the Criteria. Hicks and Gillette are greedy and were asking too much money for the Club as debts have to be cleared as part of the agreement plus the building of a new Stadium.

Davethedog

Question Author

So isn't it therefore the perogative of the owners to accept or reject?

How can the board force it through? There is obviously some legal precedent but I can't understand how they can do it.

redman41

Hicks and Gillette tried to sack 2 of the Board last night namely Christian Purslow and Ian Ayre because they voted for the takeover. The Board rejected Hicks and Gillete's attempts to Hijack the bid. royal Bank of scotland will have a big say in the matters as they are owed the Debt.

Trotbot

Normally the owners of a business ensure they have the majority vote on the Board. However, as a condition of the refinancing, RBS insisted on appointing a Director, thereby meaning the owners do not have a majority vote, All Directors have a legal duty to do what is best for the business, which occasionally is not the same as the owners desires.

Davethedog

Question Author

Thanks both