A Scottish Football Association independent inquiry has ruled Rangers chairman Craig Whyte is not a fit and proper person to hold a position in football. Rangers have also been charged with bringing the game into disrepute.
SFA chief executive Stewart Regan also confirmed Rangers face a charge of bringing the game into disrepute.
The findings of the independent inquiry were heard at a Special Board Meeting at Hampden Park today and will now be referred to the Judicial Panel.
The SFA confirmed on February 17 - three days after Rangers went into administration - that they would conduct a full independent inquiry into the activities of the club and investigate whether there had been any potential breaches of their Articles of Association.
The football governing body said at that time attempts to obtain information relating to their "fit and proper person" requirement had been restricted by the club solicitors' failure to share information.
Regan said today in a statement: "I can confirm that the Scottish FA convened a Special Board Meeting at Hampden Park today to discuss the findings of the Independent Inquiry into Rangers FC, prepared by the Chair, The Right Honourable Lord William Nimmo Smith.
"Principally, it is the belief of the Board, taking into account the prima facie evidence presented today, that Mr Craig Whyte is not considered to be a Fit and Proper person to hold a position within Association Football.
"We will be writing to Mr Whyte in relation to those findings and shall seek a response within seven days.
"The report submitted by Lord Nimmo Smith, having been considered fully by the Board, highlights a number of other potential rule breaches by the club and its owner.
"The report will now be used as evidence and forwarded to a Judicial Panel for consideration and determination as per the protocol.
"As such, the report's contents will not be published at this time.
"Nevertheless, I can confirm that the club is facing a charge of bringing the game into disrepute.
"Specifically, areas of potential breach to be considered by the Judicial Panel include: Obligations and duties of members, Official return, Financial records, Division of receipts and payment of expenses (Scottish Cup)."
Regan added: "We have sent a letter to the Rangers administrators, Duff and Phelps, advising them that failure to pay monies owed to another member constitutes a breach of the Cup Competition Rules.
"Consequently, the club faces disciplinary action unless they make payments due to Dundee United from their recent William Hill Scottish Cup tie.
"A Notice of Complaint has been issued to that effect."
Rangers joint-administrator Paul Clark said: "We note the findings and announcement by the Scottish Football Association.
"We look forward to stating the club's case to the Judicial Panel.
"In broad terms, we believe there are mitigating factors and we hope to demonstrate the distinction between the club and the actions of any individuals."
Earlier, Mr Regan said Rangers going into liquidation would be "a disaster"
Administrators have accelerated attempts to sell the club after failing to finalise a consensus on wage reductions among the playing staff following several days of talks. Duff and Phelps also warned that Rangers would not finish the season unless they achieved a quick sale or made severe cost-cutting measures.
Those developments came after Ibrox director Dave King said in a statement he believes it is "inevitable" the club will go into liquidation.
Today Mr Regan said: "(The administrators) are sending out a message that if they are not able to reach an agreement then the club is facing liquidation. That would be a disaster. It is a pretty desperate time for Rangers Football Club.
"Having had the club go into administration on 14 February, it would appear that there's a succession of negative pieces of news emerging almost on a daily basis.
"Last night the news that the club is running out of cash and may be unable to fulfil their fixtures is the final piece of news that will send Rangers fans into despair."
Asked if he was sure that Rangers would be able to play their remaining matches, Mr Regan said: "I don't think you can say with total confidence that that will happen. All we can do is work with the administrators. They are dealing with a massive issue.
"They are trying to put fires out on a number of different fronts. There are a number of investigations going on, they are trying to sell the club, take costs out of the business and there is also the threat of not being able to compete in Europe next season.
"It is a really, really difficult time for the club and I'm sure the administrators will be working around the clock to come up with a solution."
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