HEREFORD supporters are eagerly awaiting a club announcement regarding both the appointment of a new Chairman and also the identity of a replacement director following the ‘retirement’ of Ken Kinnersley.
The Supporters’ Trust have released the following background information:
The Trust have put together a guide to the process, as they understand it.
What happens now?
When Mr Kinnersley stands down, a vacancy will be created on the HFC board for a new Director. The HFC board consists of four Directors nominated by the majority of the Ordinary Shareholders and three Directors nominated by HUST. As Mr Kinnersley is one of the four Directors appointed by the Ordinary Shareholders, the new Director will be nominated by the Ordinary Shareholders.
There are currently 289,000 Ordinary Shares in the Football Club. Five major Shareholders hold 50,000 Ordinary Shares each, and the remaining 39,000 are held by a number of smaller Shareholders. HUST hold 190,000 ‘A Ordinary’ Shares.
The Club articles state that ‘the holders of the majority of the issued Ordinary Shares may appoint a Director’… this means that, potentially, three Ordinary Shareholders, holding 50,000 Shares each, could agree the nomination for a new Director.
The Shareholders can only nominate the individual they would like to be appointed as a Director. The actual appointment, itself, requires the approval of a majority of the existing Club Directors.
How is the new Chair chosen?
The Club rules currently do not state how the Chair is chosen. The Trust presumes, therefore, that the Chair will be chosen by a vote of the 7 serving Directors once the new individual is appointed. Last time this happened the new individual was Ken Kinnersley, who was also appointed Chair.
Can a HUST Nominated Director be Chairman?
Yes. There is nothing in the Club rules to prevent a HUST Nominated Director from being Chair of HFC.
Has HUST been consulted?
The new Director is an appointment for the Ordinary Shareholders to decide and HUST respects their right to do so. Similarly, when HUST chooses its’ Directors, it does not need to consult with the Ordinary Shareholders. The HUST Board is not consulted on who the new Chair should be.