By PA Sport
Last Updated: 01/12/17 6:08pm
Rangers chairman Dave King had twice failed to have the resolution passed before
Rangers shareholders have backed a special resolution that will allow Dave King’s board to finally convert loans into bigger stakes in the club.
The club’s chairman and fellow investors such as Donald Park, George Letham and George Taylor – dubbed the Three Bears – have handed over around £16m in interest-free loans to the Ibrox outfit to ensure they stay afloat, while King has promised to put in another £7m over the next 18 months.
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But they will now be able to swap a large chunk of that debt for shares after winning the right to offer shares to investors without needing to involve the rest of the club’s existing shareholders following a vote at Thursday’s annual general meeting.
A club statement read: “The board is delighted to see such support from its shareholders. The success on Resolution 11 paves the way for a share issue.”
King and his board had twice previously attempted to pass the so-called ‘Resolution 11′ at their last two AGMs but were thwarted by a bloc that included Mike Ashley and the Easdale brothers.
The board addressed a number of issues at this week’s annual general meeting
However, King has now been able to pass the motion after Sports Direct tycoon Ashley sold off his nine per cent stake to Rangers fan group Club 1872 and businessman Julian Wolhardt earlier this year.
The resolution was backed by 78.3 per cent of shareholders – a little more than the three-quarter margin required.
It is understood the club now hope to press ahead with a “targeted share issue” early next year, potentially as soon as March.