Rangers chief ‘is not a poor businessman’

RANGERS chairman Dave King shouldn’t be treated as a “poor businessman” who didn’t know he’s legally required to fund an £11 million share purchase, a court has heard.

Advocate James McNeill QC told judge Lord Bannatyne that the tycoon isn’t an “innocent” who didn’t know he had to offer other shareholders cash to buy remaining club shares.

The Court of Session heard yesterday how Mr King allegedly knew that legislation dictated that entrepreneurs who hold a 30 per cent stake in businesses are compelled to make the offer.

Mr McNeill told the judge that a suggestion made by Mr King’s legal team that their client was unaware of the 2006 Companies Act was incorrect.

He said that financial investigators had believed they had established that Mr King acted “in concert” with three wealthy fans who are nicknamed the “Three Bears”.

He said that Mr King acted with George Latham, George Taylor and Douglas Park to acquire a 34 per cent stake in the club. Mr McNeill said he disagreed with claims that the four men didn’t act in concert in acquiring the stake. He also disagreed with a claim made by Mr King’s lawyers that 14.7 per cent of the 34 per cent share was held by a company which is independent of Mr King.

Mr McNeill added: “Mr King is not some poor businessman who does not the workings of the Company Act.

“This is not someone who is a poor innocent. He didn’t come before the panel and say ‘I didn’t realise’. He decided not to appear so he could not be cross examined.”

Mr King’s advocate Lord Davidson of Glen Clova QC told the court that Mr King didn’t have money and wasn’t able to fund the buy back at 20 pence per share.

The lawyer told Lord Bannatyne that there was money in on-shore and off-shore trusts but they were in the name of Mr King’s family and he didn’t have control of them. Lord Davidson said the court shouldn’t pass the order required by the panel because the shares were currently worth 27 pence.

He added: “Mr King is penniless.” Lord Bannatyne will issue his ruling at a later date.