The appointment of Walter Smith as chairman of Rangers brings reassurance to the club.

For supporters, he is a figure who is understood and trusted; for fellow directors, his natural authority will allow an element of control over a boardroom that has often been at odds. Smith would admit himself that his lack of corporate experience means that he is not the ideal chairman for a publicly limited company, but the board had to deal with the circumstances they were faced with.

Malcolm Murray has stepped down as chairman, although he currently remains on the board. Smith provides the leadership that Murray lacked, but his predecessor brought the corporate nous and familiarity to the markets that the former Ibrox manager does not possess. The decision was the right one, made at the right time, but it was also made out of necessity.

Murray was almost immediately at odds with the management style and personality of Charles Green and Imran Ahmad, who brought him to the club, and conflicts ensued. He also pushed for the corporate governance that he was invited on to the board to provide. In the end, Green has resigned as chief executive and will step down from being a director at midnight on Friday, Ahmad has left and Murray has been forced to step down himself. The disputes that led to these consequences had become a distraction.

Smith's appointment will prevent a power vacuum from asserting itself. There had been splits on the board, although not always involving the same individuals on either side, but the dissent became public as part of an ongoing tussle for control. That can, at least for now, be subdued. Smith will need to rely on his business associates for guidance on some matters, but it is the role of the chief executive to manage the business and for the chairman to manage the board.

Smith's experience and background does not preclude him from the latter. As non-executive chairman, the role is part-time and involves providing guidance and support to the executive management team as well as an element of public profile. Smith, a respected figure in Scottish football, will also have an influence on Rangers' role within the game itself. In a recent interview, he intimated that the best way for Rangers to return to the top flight is to earn their way up the divisions rather than accept any reconstruction plans that might accelerate the process. That was the same view as Green, and most of the supporters.

The appointment of a vice-chair or a chief executive whose background would offer greater assurance to shareholders and address investor relations could also assist Smith. Craig Mather is the interim chief executive, as well as the permanent chief operating officer, and will have to fulfil that role for now, although there had been an intention to search for CEO candidates.

Rangers need a period of calm. Season tickets need to be sold and there is no question that Smith's appointment will help in that regard. If Ally McCoist returns from his charity trip to America and publicly backs the renewal campaign, Rangers will hope to sell a figure approaching the 37,000 of last season. That would help to continue to fund the club's journey back to the top flight, with three Premier League players – Jon Daly, Cammy Bell and Nicky Law – already part of the summer's signing strategy.

However, the business model remains a source of contention because further investment will be required before the club returns to the top league, perhaps even sooner. That could come from investors in a second round of funding, but proper stability will only be achieved when the balance of the shareholder base is altered. Green is the major shareholder with 7.8%, and Blue Pitch Holdings were able to generate enough support to prompt an extraordinary general meeting – with four resolutions: to vote Murray and Philip Cartmell off the board, and James Easdale and Chris Morgan on to it – which the current board will need to address soon.

Dave King, the former director, continues to investigate the shareholder situation with a view to taking a stake, but with such a disparate collection of investors, including ordinary fans and the Rangers Supporters Trust collective, the definitive voice of a majority shareholder, or large minority shareholder, is currently missing.

"I see the club being bid for," said Michael Jarman, an equity strategist at H2O Markets. "It has a market capitalisation of about £36m. The market was valuing it at the same price or slightly more expensive than Celtic. The share price started to get hit around the board instability and has continued to underperform in the market. When you have instability with the chief executive stepping down then investors will get rattled.

"What attracts investors? It is the history and heritage of a club, the loyalty of the fans, the infrastructure and do they play European football. Some [might] want to dominate and get into Europe and put the Scottish Premier League on the map."

Smith becoming chairman is a step in the right direction for Rangers, but there are many other challenges to face.