Trust response to EGM announcement

Following the Club’s announcement on Monday evening regarding the forthcoming AGM, we have been contacted by several Trust members in response to this. If you have not seen the announcement, you can read it here, and the Club’s response to it here. (updated 27th July)

As is and always will be the case, The Trust’s response to this will be directed by its members. As such, we will be conducting a poll of Trust members starting on Friday 4th August. We have chosen this date as it is the day after the Fans Forum. By then, supporters will have had the opportunity to decide which is the appropriate way to vote. The Trust will be voting at the EGM the way that the members dictate them to.

We have had a request from a member to hold a Trust meeting ahead of the Ebbsfleet game on Saturday 5th August. We do not believe this would serve much purpose at this moment in time given it is just two days after the forum, where any questions related to the EGM can be submitted and there will be a Trust presence on the night for any enquiries that are Trust related. The Trust Desk will be running in the Dale Bar before the Ebbsfleet game.

There were three key questions that came through from members since the announcement that we have put to Dale Chairman Simon Gauge:

Q) With the loan being secured on the stadium, does that mean that if the loan is not repaid, then the stadium will be owned by Simon Gauge and Richard Knight?

No – it means if the club gets liquidated, we get our money back as a preferential creditor if the ground is sold. This would be ahead of shareholders.

Q) Why is this deal being done now?

In order for the club to survive and have adequate cash flow we needed to sell the remaining available shares. We had hoped to sell them by now but haven’t. We continue to talk to possible investors but cash flow has to continue to be managed extremely carefully at the present time.

You have applied to the COF for a grant, which if successful would have negated the need for any loans and secure the ground for the use of football. This would also mean the boards preference would be to find an investor that just wants a minority stake in the club as we would not be being driven by cash flow demands.  It is the answer to most of your members concerns and would allow the club to keep operating on a fan owned model.

It is important we have the necessary breathing space to see the outcomes of both this and the search for investment that loans provide.

Trust me, both Richard and I would rather not be lending this money but do not see another solution. If any member has one we are glad to listen but please give us credit that we have tried every other avenue.

Q) Why is the EGM not being run in conjunction with an AGM after the Trust were told that there was an expectation to hold it before the start of the season? It would provide shareholders of a better understanding of the reasons behind this move.

This is a single decision EGM that needs an urgent decision.The AGM we want to hold back for now because if an investor is found there may well be significant changes to the board that need voting through and it is a guaranteed opportunity for any new investor to address shareholders.