Imps Trust: Dinosaurs Or Just Lost Their Way?
Reading the latest idle chatter on the Lincoln City Supporters Trust Website and, in light of their recent track record of own goals, one has to wonder whether they have lost their way. What is plain to see through the committee culture of smoke and mirrors, is that the Trust clearly do not know how to treat their members, or understand the importance of communicating with them.
Thank you for reading Neil Gentleman-Hobbs.
What power does Lincoln City Supporters Trust (LCST) shares have now they have been transferred to Lincoln City Holding Co Ltd. In actual fact none. One million Trust shares have been transferred into Lincoln City Holding Co Ltd which gives them approximately 30% of the total shareholding. This will be reduced down to around 28% when Andy Lane invests £75k to join the board. Any additional investor will reduce the Trust’s % down even further. Remember, as was pointed out at the recent meeting where the fans met the board: A voting majority of 60% is required by the Board of LCH for changes to be passed, that could automatically affect Lincoln City Football Club. This means that LCST have no control whatsoever in decision making within LCH.
Lincoln City Supporters Trust need to answer the following questions, and then let members decide if they have lost their way or not.
Did LCST realise they would have no control over decisions taken by LCH when they decided to transfer one million shares?
Did all LCST Board members receive a full presentation from the Club’s solicitors outlining the pros and cons of transferring one million shares to LCH?
Did all LCST Board members understand the consequences of the voting system with LCH?
Is the LCST Board prepared to give the full details to the members for the reasoning behind their decision to join LCH at the forthcoming EGM? The AGM in June was cut short with many questions remaining to be asked, including this one, due to a Fans Forum being given preference over the AGM. At least the Trust Board said they would continue on from the AGM and answer all questions at the yet to be advised date of the EGM.
Then of course we have the issue of what would happen if a major investor came in to buy-out LCH would LCST expect a large sum for their one million shares?
Answer: Any major investor would carry out a due diligence on the company and directors. They would want to know how many shares each director owns, how many were purchased by investing in LCFC, how many were purchased from shareholders and at what price, and how many were donated free of charge. Basically this means the shareholding in LCST has not only no control whatsoever in decision making in LCH, but their shares are virtually worthless. In other words they would have been better leaving them in LCFC, where together with the ‘ordinary’ shareholders they would at least have retained a majority of the shares issued by the Club, and their respect for doing so.
This leaves the major question for shareholders of LCFC and members of LCST to decide.
Were LCST Board members hoodwinked into believing the new set-up was good for the Club without having a full presentation, and how many of them actually understood, or as at today understand the implications of agreeing to transfer one million shares?