Shares Plans Given Thumbs Down

By: Rob Sedgwick
Date: 26/11/2001

A MINORITY of Grimsby Town shareholders, including former Chairman Bill Carr, have blocked the club's plan to increase GTFC's share capital by around £300,000. With a 75% majority required to back to scheme, only 60% of existing shareholders were in favour of the proposals, therefore blocking them.

The club had come up with two proposals on how the share capital could have been issued. The first option would have been to allow the club to issue shares to any party who was interested in buying them, with the second choice to have alloted shares for existing shareholders on a one-to-one basis in a Rights Issue.

A clearly disappointed Grimsby chairman Peter Furneaux told Radio Humberside that the decision could have repercussions for the Mariners' proposed move to a new ground at Great Coates. "Without this being the first step we cannot issues shares for new issues, for example the new stadium. Without the first step, there won't be a second step" hinted the Chairman.

Although the amount of £300,000 which could have been raised would not have been significant in terms of addressing the club's mounting debts, the board had hoped to bring in some extra capital and test the mood of shareholders ahead of big decisions such as the new stadium which are around the corner. The Town Chairman had appealed to different factions of the club's shareholders to settle their differences ahead of today's crucial vote.

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