Newcastle directors defy small shareholders
from BBC News, December 21, 1998
The disgraced major shareholders of Newcastle United football club have used their majority to overturn a vote among small shareholders to prevent their return to the club board.
A fiery annual meeting earlier saw shareholders present overwhelmingly reject the reinstatement of Freddie Shepherd and Douglas Hall as directors in a show-of-hands vote.
Ian Reeve: Shepherd and Hall's reappointment have angered some minor shareholders The informal vote for rejection forced chief executive Freddie Fletcher to call a formal poll of all shareholders.
With Mr Shepherd and Mr Hall themselves holding 60% of Newcastle shares, this allowed them to secure majority support for their re-appointment.
In the end they were returned on an approval vote of 70%.
Meanwhile, shareholders and fans were told that nothing will happen regarding any proposed takeover before next spring at the earliest.
Huw Williams reports form the Newcastle news conference Last week, Newcastle admitted that it had struck a deal for a potential sale of the club to US cable group NTL which immediately took an initial 6.3% stake in the Magpies.
The meeting erupted a number of times with Mr Fletcher forced to repeatedly call for order as shareholders loudly heckled those on the podium. Several shareholders shouted "it's a stitch-up" over the re-election issue.
Newcastle assured takeover not imminent The two disgraced directors were able to vote themselves back onto the board of the football club earlier this month sparking the resignations of the chairman and financial advisor.
Mr Shepherd and Mr Hall had been forced out earlier this year following their disparaging remarks about Newcastle fans and leading player Alan Shearer.
Shareholders of the stock exchange-listed Premier League club are also expected to oppose the proposed £160m takeover by NTL. An understanding leaves NTL, the UK's third largest telecommunications and cable company, free to buy the rest of Mr Hall's shares and therefore a controlling stake in the club.
However, Mr Fletcher told the meeting: "No offer has been made at the moment and if one is, then full advice will be given to shareholders at that time."
The cable group has said there would be no agreement on the takeover bid until the Monopolies and Mergers Commission, the UK's anti-competition watchdog, has approved of the takeover bid of Manchester United by media group BSkyB.
Fans' concern About 500 fans watched the latest meeting via a video link-up to homeground St James' Park.
Long-time Newcastle supporter Ted Ablett, 70, said: "I have supported this club since the 1940s and we need some stability here. At present it is a shambles and I don't know what input we can have this morning."
Nufcmismanagement view:
What a shocking way to end a shocking episode in the history of Newcastle United FC.