[Please note that this is not legal advice and should not be construed as legal advice.]
I am a qualified solicitor. I, like many fellow Evertonians, am very frustrated at our current predicament. I am especially aggrieved at the way our club is run. I could produce a very long list but what I find totally disgusting (apart from the lies) is the loss of money our club makes from fatal errors. These being:
1. The Kings Dock fiasco (millions lost ? please someone quote a correct figure);
2. The Kirkby ground move (millions lost ? again please someone quote a correct figure);
3. The failure to offer Dan Gosling a contract (approximately £4 million lost on fees);
4. The failure to stop James Vaughan playing for a second team in one season, something most football fans know means that the affected player cannot move to another club (approximately £250,000 lost in a potential loan deal to Celtic).
I am sure there are similar losses but my point is this:
The Directors at Everton are under a legal duty to the company, which is interpreted as meaning the providers of capital, that is the shareholders. As such, a director has a duty of care and skill to the shareholders. I argue that the Board's failure in the above matters (and others) constitutes a breach of their duty. This means that a legal case could be brought by shareholders against the Board. Alternatively, this adds weight to the argument that certain (if not all) of the directors should be removed from office.
Furthermore, the sale of our assets both being land and players suggests that we are in dire financial crisis. Some may even say that we are close to being insolvent. Former colleagues of mine worked close to a former chairman of our Board who was adamant that Everton should be placed in to administration due to the financial crisis. A certain individual (who is still at the club) refused to allow this and forced out the other person. This leads me on to the point that there is a liability for wrongful trading in relation to directors where the company is insolvent and they ought to have recognised that fact. Again this constitutes Court action.
Conclusion
The insolvency issue is harder to prove. However, the first point is much easier to prove and a case of breach of the fiduciary duty of care can be brought by shareholders of Everton. Furthermore, the shareholders can seek the removal of Everton directors. Although I am unaware as to who owns what shares, I assume there are enough private shareholders out there for an action to be brought. The shareholders can either commence a litigious action against the Board for breach of duty (this would create major headlines) and/or the shareholders could seek the removal of directors by Ordinary Resolution at an Extraordinary General Meeting.
I won?t go in to the ins and out for this but there is a solution for change. All it takes is someone to identify the shareholders who support our action and to commence some form of action. Although this will not change the ownership of the club it might force those owning the majority of shares to sell their shares.
Please note that for the sake of my legal career, this is not legal advice and nothing I write is meant to be construed as legal advice whatsoever. If you do require legal advice, I recommend that you instruct a qualified solicitor.
Is there anyone out there who wants and has the time to start some form of action?
Note: the following content is not moderated or vetted by the site owners at the time of submission. Comments are the responsibility of the poster. Disclaimer
To start with, any litigation would require both time and money. Who is going to provide the funds? And do we have the time for this to go through the courts before we are in serious trouble as a club? Who would pay the legal fees for the Board? Presumably the club, further weakening an already weak situation regarding finances.
Nice idea and has merit but the only way out for this club is for Kenwright to find a buyer. It will happen eventually since Kenwright is not immortal. Hopefully it will happen before the club goes bankrupt.
EFC tried and failed on two ground moves for different reasons, the first being we have no tangible benefactor offering us cash as a reasonable rate (Gregg wanted control for SFX and a large return which would have reduced EFC earning potential).
Kirkby was a good business model just in the wrong place, I said it from day one it should have been located in Walton Park but all things considered I would still prefer Kirkby to nothing. EFC can?t loan out due to football rules, he needed match fitness so it makes sense.
You conveniently fall to mention the record transfer buys in three consecutive seasons, massive wage payout to players like Cahill and Arteta £4 million each per year! Sales of players like Lescott, Johnson, Rooney which yielded us revenue close to £ 60 million. The EFC Academy and work in the Community which are copied across the world for its excellence, why not mention positive things about our club?
The fact is simple and I return to your post EFC spends far more money then it gets in so year on year we have to sell or borrow on assets available which to us includes players and infrastructure. Unless this gap is bridged be a new stadium or a wealthy benefactor then our future looks dire it?s a mathematic certainly. That?s the reason why NOBODY both on the board or outside have ever wanted and even hinted in taking over EFC without this issue being solved.
To sum up my defence, the facts lie in the accounts and when published you will see we are sliding even further in to this hole. Changing the Directors doesn?t change a thing, the problem lies we are a big club in our hearts but in reality we are mid to lower Prem at best. EFC problems are far larger than the egos of the current Directors. COYB
Firstly I think Moyes and Kenwright have previously done a very good job in stablising the club. Now I feel though changes must be made.
15 years since we last had silverware is not good enough. Finishing top 6 for a few seasons, FA Cup finalisits, high attendances at home, some European money and yet one of the poorest teams in the Premier League is not good enough.
Where is all the money going? Why is the debt still getting bigger when we don't spend? Why can Kenwright not attract investors yet over the years Newcastle, Man U, Villa, Leceister, Liverpool, Blackburn, Man City etc etc all have managed it?
I believe the reason we cannot find investors is because Kenwright is holding it up either through greed or something else. There is something drastically wrong at our great club and we don't get answers; I believe it's time now for either a demo at the games or chants for the board and Kenwright to step down. Moyes needs support our club needs investment. With things the way they are it will never improve.
Do you really want to tell your children that Everton were once one of the best teams in the land, in the 80s they helped dominate english football and then tell them that unfortunately we will never do it again? That, by following Everton, they are watching a team that will win nothing???
I'm calling on all fellow Everton fans to join the fight, get the board out, make Everton successful again. Lets not settle for also-rans anymore ? we are greater than this.
Nil Satis Nisi Optimum means nothing but the best... Prove it!
They way I see it, the main problem is the lack of investment from the board to enable the manager (whoever that may be) to buy any half decent players to compete with the top teams. I accept at the moment that we ain't gonna match United, City, or Chelsea but what Moyes has had to suffer over the last few years is ridiculous.
So, for me, the main issue must be to put pressure on Kenwright and his hidden cronies to back the manager financially to compete. I have despaired of Moyes a lot of the time over the years but I believe if this campaign turns into a "Moyes Out" it will lose a lot of people who otherwise would be firmly behind it.
Let's get the board to back Moyes, if he fails with investment then that's a separate issue. So we concentrate on the board, and this struggle will not be over in a short time. It will be a long struggle. But as concerned Evertonians if we don't start and persevere then I'm, afraid the club will die a death of 1000 cuts.
So big kudos to the computer literate (counts me out) lads who have got this ball rolling. In the beginning we would be thought of as a minority of cranks but I believe that minority will grow to a majority. Early aims must be to get all the fan sites to be united in this action. As time goes by we can target the media and bombard the main board, players websites, Facebooks etc. It is time to go on the attack.
People may say "What's the point?) The point is, if you love Everton football you can't just do nothing and let the club fade away. Our mission statement is along the lines of :"Invest or sell NOW!!!!" Anyone who disagrees with this statement, ask them why? Media flunkies, ex-player flunkies... ask them do they think it's right the financial backing Moyes has had. Put the pressure on them to put pressure on the board we must corner Kenwright on this one.
As the late great John F Kennedy said, "Ich bin ein Evertonian"
Secondly and I have made a similar point on a different article on this site, when Moyes has had money to spend he hasn't spent it well. The Rooney fee being a case in point: Beattie, Van der Meyde, Krøldrup, Valente and Davies alone cost £20M, we got £12M of that back and not one of those players made any sort of impact.
When Lescott was sold, Bily and Heintinga were bought for nearly £16M yet, when Moyes has a full strength team to choose from, both are on the bench at best.
Most teams only buy when they have sold; Villa were only able to secure Bent's signature through the sale of Milner to City. Spurs' big signings came from the sale of Berbatov to Utd. With the exception of City most clubs no longer can go out and buy whoever they like as they end up like Portsmouth and Leeds.
Moyes could have sold players in the summer for positions he desperately needed, ie central midfielder, winger and centre forward. Instead, he chose to go into the new season with what he had, playing the same old boring negative tactics and we have the results of that decision before us.
If the press and players are to be believed there was proper interest in Jagielka, Arteta, Heitinga, Peinnar, Saha, Yakubu, Rodwell and Billy. All could have been replaced and if Moyes had of bought wisely those positions needed most would have been filled.
I am no Kenwright apologist, in a lot of ways he is as bad as what Marsh and Johnson were but Moyes shouldn't be allowed to hide behind our financial position for his own inadequacies.
Whether you like him or not, this weekend is not the time to protest, first thing we must do is retain our place in the Premier League; thereafter, you can have your protest.
What you must also realise is your actions will devalue the club short-term; long-term... who knows?
BK has made mistakes, even he admits that, but this is about EFC and, unless we have a Plan B or even the wind of a new investor, the whole protest serves no purpose.
I was appalled with the actions of the students in London but at least they had a goal which was to stop the vote in the Commons so their actions could have aided a change of mind. Whereas strikes like the BA staff and London Tube staff are completely motivated by personal politics and selfish greed with the interest of the company secondary, I do hate that red shite Tony Woodley!!
My point is simple, protests are fine but they must have an end product and other than moving BK aside (he would still own 28%) none of us have the answer to solve EFC losses year on year. Everton FC is bigger than any one of us individually; it?s a way of life ? our way of life ? so be careful with it. COYB
You say you want BK out but to replace him with who? These so-called rich benefactors just desperate to buy the club and turn us into a successful team are lining up where? Do you honestly think not one of them would have gone to the press to complain about BK? For instance wanting to keep his so-called train set, how much he actually wants for the club, or the numerous clauses that he has inserted for any potential buyer that so many clued-up fans seem to know about?
If Everton were challenging for a Champions League place there is no way these discussions would be taking place. When we got to the final in 09 despite the fact we had so many injuries and the only signing being Fellaini nobody was preparing a protest at his stewardship, other than you and your mates obviously.
BK leaving GP or not even attending doesn?t change a thing; we still have no cash and no investment so all you would have done is air your dirty washing in public and we all lose. The problem is bigger than BK now and we have to deal with this reality; blaming or even mob rule is just ridiculous and only benefits the protesters feeling better.
Man Utd's owners have been treated terrible yet the company is run well and is moving forward as a successful business but the blinkered fan can?t see that. Man Utd in the next year will own all the land around Old Trafford, about an additional 10 acres, which has cost them £50 million plus, what owners do that unless they wish to expand?
Emotion is fine when we go the match but in business it?s a weakness, all open-minded fans can see EFC issues and we have done ok considering, yes just ok. Things can get a lot worse than what we are feeling today ? just chat with any Sheffield, Leicester, Portsmouth, Leeds, Ipswich, Southampton, Charlton, Middlesbrough fan ? and many more you wish to add.
Be careful what you wish for ? it may come true; on your head be it. COYB
Kenwright has destroyed our club, left a manager in charge who is incapable of taking us any further. Our club will be in ruins.
Why have the accounts taken so long to publish? Scared that we will be the next Pompey? We all want action but of course we are Everton. We don't do anything about it.
Avoid the games, we're in debt anyway. Remember Chelsea were once sold for £1 and look what they transformed into!
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