Charles Green will be asked to explain his comments and behaviour at a meeting of Rangers board of directors.

Former manager Walter Smith, now a non-executive director, has confirmed he will expect the chief executive to explain why he agreed to receive £25,000 from Craig Whyte's business partner, Aidan Earley, in the early stages of his takeover.

Green has said a cheque was received to pay legal fees but then bounced, leaving him to pay the outstanding sum himself. However, Smith wants to know why he, as a board member, was not told about that payment from an associate of disgraced former owner Whyte. Smith also expects Green to explain the racist language he admitted regularly using towards commercial director Imran Ahmad, who he has referred to as his "P*** friend".

The Rangers board consists of Green, finance director Brian Stockbridge, and non-executive directors Smith, Malcolm Murray (chairman), Ian Hart, Bryan Smart and Phillip Cartmell.

When asked if Green should have notified him about Whyte's money, Smith said: "I think he should possibly have done. There's a case, yeah. Non-executive directors can only do that [scrutinise finance] with the amount of information that's available to you. So, like everybody else, that [information] only became apparent to me a week ago. So for me, like every other person, the information was thrust upon us a week ago.

"At the time I was asked to do that [be a non-executive director] I wasn't told anything about it. Any kind of thoughts or process that non-executive directors have take a bit of time to transpire. We can't just sit down and immediately act. We have to have board meetings, meeting with the rest of the non-executive directors and Charles Green as well. We have to wait and see what transpires once we manage to get everyone together."

Green has upset many within Ibrox with his racist language towards Ahmad and also his reference to the current Rangers team as the worst ever to play for the club. "They [Green's comments] don't sit that well with anyone who has been involved with Rangers," said Smith.

"You've got to remember Charles has come in. This is his first year. He has come from England, where he might feel the situation is bigger and better than it is in Scotland and he has maybe forgotten that in Scotland Rangers, Celtic and the national team have massive media coverage. In England it's mainly regional.

"I'm sure a lot of the statements he has made he would far rather have kept to himself. That's not his type, it doesn't seem to be the way he goes about things. I'm sure he'll be far more careful in future."

The accusation of racist language would be specifically investigated, insisted Smith. "I think it is one of the aspects we would expect to cover. We will ask when we get the opportunity to ask. It takes a bit of time. I don't represent the other directors; I represent myself. We have to be given a bit of time to make sure we ask the right questions and hopefully we can get the right answers."

Smith was asked if he would consider his own position and possibly resign from the board if Green did not give satisfactory explanations for the non-disclosure of the Whyte money and the racist language. A date has still to be set for the board meeting.

"I will need to speak," said Smith. "Obviously we all need to sit around the table. I can't be any clearer: I can't answer the question until I go and ask [Green]. I cannot answer that question before I have the opportunity to ask questions. I have told you that I am going to ask and others are going to ask when we have the opportunity."

Smith was at Ibrox to publicise a game between Rangers greats and Manchester United legends at the stadium on Monday, May 6 (kick-off 2pm). Both The Rangers Charity Foundation and UNICEF will receive donations from the proceeds of the game and a dinner at Glasgow's Radisson Blu hotel later that evening.

Smith will manage the Rangers team, which will include Ally McCoist, Brian Laudrup, Richard Gough, Arthur Numan, Lorenzo Amoruso, Michael Mols, Jorg Albertz, Gordon Durie, Alex Rae and Marvin Andrews. The United team will be managed by Bryan Robson, and will include Edwin van der Sar, Dwight Yorke, Denis Irwin, Quinton Fortune, Jesper Blomqvist and David May.

Tickets will go on public sale on April 18 priced at £17 for adults, £13 concessions and £5 for juveniles. Rangers season-ticket holders will receive discounts.