The Press and Journal (Inverness, Highlands, and Islands)
Whyte banished from boardroom
Former Rangers chief banned for 15 years
Former Rangers owner Craig Whyte has been disqualified as a director for 15 years.
The Insolvency Service handed out its maximum ban “for failing to avoid conflict of interest in the running of the club”.
Whyte took Rangers into administration in February 2012 and they were consigned to liquidation in June of that year – just 13 months after he took over.
He previously received a seven-yearbanasadirector in 2000, a fact that did not emerge in the public domain until after he bought a majority stake in Rangers from Sir David Murray’s company for £1 in May 2011.
Whytewascited forcausing the Glasgow club to enter into an agreement to “effectively fund the purchase of itsownshares”; for conducting the club’s affairs without reference to other board directors, “preventing RFC from being subject to proper corporate governance”; and causing the club to fail to comply with its tax obligations.
Murray sold the club to Whyte on the understanding that he would pay off bank debts of about £18million – but themoney camefromselling off future season ticket sales.
Whyte removed several directors while others quit in frustration at their exclusion from decision-making and the club ultimately owed £21million to Her Majesty’s Revenue and Customs, excluding the so-called “big tax case” that preceded his takeover, when they were consigned to liquidation.
Whyte was involved in attempts to complete an assets purchase of the doomed club but found himself sidelined by Charles Green’s consortium, who relaunched Rangers as a newcompany in the bottom tier of Scottish
“Blatant lack of regard for proper corporate behaviour and control”
football in June 2012. Financial problems continue to dog the Ibrox club.
UK Business Minister Jo Swinson said: “The court has disqualified Craig Whyte for 15 years for the harm he caused to Rangers Football Club, and to the many football fans who believed in his promises.
“Mr Whyte bought a much- loved club and promised fans that he would provide further cash to bring success.
“However, he caused the club to use this money to fund the purchase of its ownshares, reducing funds for investment.
“He also failed to consult other directors on important decisions meaning thathisbehaviourwentunchallenged.
“Such blatant lack of regard for proper corporate behaviour and control does not have a place in modern society.
“Directors have a clear, statutory duty to ensure that their companies are run properly, for the benefit of the creditors, shareholders and, in this case, fans who believed in him.”