THE Rangers board has asked pointed questions of Dave King over how he intends to avoid a stock exchange delisting related to his suitability as a director.

 

It is the latest development in the current directors' war with the former Rangers director, who is seeking to oust the allies of Sports Direct chief Mike Ashley at an extraordinary general meeting at Ibrox on March 6.

Two weeks ago the board moved to discredit the South African businessman and seriously question whether the former director under disgraced owner Craig Whyte's leadership was a fit and proper person for a major boardroom role at Rangers.

Last year Mr King settled a 12-year-long income tax dispute in South Africa after pleading guilty to, and being convicted of, breaching 41 criminal counts of the country's Income Tax Act. He agreed to pay £45 million as a settlement and fraud charges against him were not pursued.

The board's questions partly related to the directors' previous advice from their stock exchange nominated adviser (Nomad) that there would be a "material adverse impact" on the company's stock market listing if Mr King is appointed to the board. Nomads are the primary regulators of any company floated on the Aim stock exchange.

Mr King has previously dismissed the idea that he is not a fit and proper person to take a place in the boardroom, saying his settlement with the authorities in South Africa provided him with a "unique status of credibility".

However, the board of the club holding company Rangers International Football Club plc said that if Mr King were to succeed, Manchester-based stockbroker WH Ireland would resign as Nomad to the company and shares would be suspended from trading immediately.

The board has said it believes there can be no guarantee that a new Nomad would be appointed and without that the company would no longer be traded on any Stock Exchange, making raising capital "both more difficult and more expensive".

But Mr King has said his discussions about appointing a new Nomad after the EGM indicate that they "other than the normal due diligence - have no concerns about that".

The board said they "feel it appropriate" to ask questions of Mr King "on behalf of shareholders".

The directors asked what action Mr King intends to take "to avoid the suspension of the company from trading on the London Stock Exchange, and the subsequent risk of being delisted from trading should shareholders vote him onto the board, as previously outlined".

Ahead of the meeting, the board also asked about Mr King's intentions for the direction of the club. It asked him to explain "what his business plans are with regards to the future running of the club and, in particular, how he intends to finance the club going forwards".

Mr King has control over 14.6 per cent of RIFC and has won a vote to decide whether the current board of David Somers, chairman, Derek Llambias, chief executive, Barry Leach, finance director, and James Easdale, non-executive director should remain. He wants to replace them with himself and associates Paul Murray and John Gilligan.

A £10 million loan from Mr Ashley's Sports Direct to prevent the Rangers business suffering an insolvency has securities over Murray Park training ground and other properties including precious club trademarks and logos. It also provided the tycoon with ownership of the club merchandise sales company Rangers Retail.