Rangers: EGM set for 6 March as board ask questions of Dave King

Rangers FC
Rangers' EGM will be held at Ibrox on 6 March

Rangers have confirmed their extraordinary general meeting will take place at Ibrox on Friday 6 March.

And the club have asked shareholder Dave King, who has called the EGM, for clarity on his plans for the club.

Shareholders will vote on King's resolutions to replace the current board with himself and two others.

And, in a statement to the London Stock Exchange, Rangers asked King "how he intends to finance the club going forwards".

The Rangers board had wanted to hold the EGM in London, but two hotels in the city backed out of hosting, forcing the move to Ibrox.

King wants chief executive Derek Llambias, finance director Barry Leach, chairman David Somers and James Easdale voted off the board.

Dave King
King wants a seat on the Rangers board

As well as becoming a director himself, King wants former Ibrox director Paul Murray and John Gilligan on the board.

Rangers have taken out £10m in loans from shareholder and Newcastle United owner Mike Ashley for the purposes of working capital.

Ashley wanted to increase his stake, in underwriting a share issue, but the Scottish Football Association denied him permission, citing its dual ownership guidelines.

King bought a 15% stake in the club in January and called for an EGM before the end of the month.

Rangers are third in the Scottish Championship, 22 points behind leaders Hearts, but do have three games in hand over Hearts and second-place Hibernian.

Only the league winners are guaranteed promotion to the Premiership, with sides finishing second, third and fourth entering the promotion play-offs.

In their statement to the stock exchange, Rangers said: "On behalf of shareholders, the board feel it appropriate to ask Mr King to provide further information regarding:

"a. what his business plans are in regards to the future running of the club and, in particular, how he intends to finance the club going forwards; and

"b. what action he intends to take to avoid the suspension of the company from trading on the London Stock Exchange (and the subsequent risk of being de-listed from trading) should shareholders vote him on to the board, as previously outlined in the announcement made on 6 February 2015."

Rangers players
Rangers have struggled for form so far in 2015

The latter question relates to Rangers' nominated advisor (Nomad) - the firm that acts on the club's behalf in the Alternative Investment Market (AIM).

Should King wish to replace the current Nomad, or if that firm were to resign, Rangers would need a new one in place within a month to avoid being de-listed from the Stock Exchange.

Meanwhile, the Rangers Supporters Trust has revealed that it has been given control of an extra 1.36 million shares ahead of next month's meeting.

The fan-ownership group, which already holds around 1.3 million shares of its own, has been collecting proxies from minor shareholders and is now in charge of a 3.25% stake.

Rangers First, a like-minded group with more than 11,000 members, plans to do the same with its 1.7% stake.

Describing the choice of Ibrox as "the natural choice of venue", King's group also welcomed the backing of the two groups.

"They have performed a remarkable service for their club and are to be commended," said a group statement.

"Both groups have released the results of surveys conducted with their members and the overwhelming majority have backed our resolutions."

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