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Green fails in legal bid to dissolve Rangers company

FORMER Ibrox chief executive Charles Green has been thwarted in a bid to dissolve the company at the centre of major dispute over the ownership of Rangers.

DISPUTE: Charles Green is in legal battle over Rangers' ownership.
DISPUTE: Charles Green is in legal battle over Rangers' ownership.

The Yorkshire businessman who fronted the takeover of Rangers through the purchase of liquidated assets, has twice tried and failed to have the firm used for the purchase, Sevco 5088 Limited, struck from the companies register, it has emerged.

Experts say the move, if it was successful, would have undermined future court action by former Rangers owner Craig Whyte and business partner Aiden Earley over Rangers ownership.

The three men are currently locked in a legal battle over ownership of the Rangers.

Club auditors Deloitte previously raised concerns over an "uncertain outcome" of the potential litigation which they said remains a key uncertainty hanging over the business.

Donald McNaught, business recovery and insolvency director at Johnston Carmichael said: "The dissolution of that company would significantly undermine any right of action.

"If that legal entity is the vehicle that is entitled to an action, then it is fundamental to any later legal action, because it is the party with the rights."

Mr Whyte had always insisted he was the main driver behind Sevco 5088 - the company identified by administrators in May 29, 2012 as being the newco that was "contractually obliged" to purchase the assets and business of operating company RFC 2012 plc which was in administration.

Mr Green denied in April, last year that Mr Whyte or Mr Earley were involved in Sevco 5088 and said director documents lodged at Companies House were not valid and it is understood were referred to police by legal firm Pinsent Masons.

Mr Whyte produced recordings of a conversation between the pair, with Mr Green appearing to tell him: "You are Sevco, that's what we are saying."

Mr Green said at the time: "This is correct but at that point I had signed a resignation letter and a stock transfer form because it was decided that a Scottish company should buy a Scottish institution. Sevco 5088 wasn't required." In April, last year, Rangers International Football Club plc, the holding company which owns the assets, said that Sevco 5088 was not an active subsidiary describing it as a "defunct non trading company".

Termination proceedings began in 2012 and documents show RIFC claim it would have been struck off by the Registrar of Companies had "false claims of directorships" not been filed.

A statement on the Rangers website on April 12 said Mr Green was the sole director of Sevco 5088 and he had resigned to be the founder director of Sevco Scotland Ltd, the company he transferred Rangers' assets to once the CVA had failed.

By October, last year, RIFC had spent £600,000 contesting the claim by Mr Whyte and Mr Earley.

This month it emerged Mr Earley was banned from being a director in Britain for five years.

But the Insolvency Service has given sanction for him to remain as a director of Sevco 5088. It was understood this is connected to the court battle over Rangers' ownership.

In the last attempt, Mr Green was the only signatory to application to dissolve the company. Applications have to be signed by all or the majority of directors.

Following an objection, the proceedings were suspended. No further details were available.

According to Companies House rules, a request for dissolving a firm can be made if it is not subject to any legal proceedings, current or proposed and has not traded within the previous three months.

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