SWINDON Town owner Lee Power has been told by a High Court judge that he must offer to sell all 85 shares in Swinton Reds to Clem Morfuni's Axis.
The Town chairman had asked for a decision to be delayed, but this was not granted.
Due to the pre-emption process that remains in place, Mr Power is not entitled to sell STFC to his preferred option of AC Sports - otherwise known as Able - without first offering it for sale to Axis as Axis is a minority shareholder in Swinton Reds, a company which indirectly owns the club.
In a formal written judgement, Deputy High Court Judge Nicholas Thompsell told Mr Power he has the right to appeal the decision but that as things stand he must accept the £212,500 sale price initially marked out via the shareholder's agreement and not the £250,000 that he wanted.
Mr Power must decide whether he wants to voluntarily sell his shares - in which case the process will be relatively straightforward - or whether he wants to go to appeal.
If that happens, Mr Morfuni's Axis will need to request that the Court orders Mr Power to transfer the shares.
Axis had asked that the shares be transferred immediately in order to save the financial and sporting interests of the club.
The judge agreed with Colin West QC that Mr Power’s evidence on his intention and financial means to support STFC remain unsatisfactory but was not yet willing to exercise his power to force a sale.
The judge once again asked Mr Power to produce suitable financial information confirming his willingness and means to support the club.
Friday's judgement was in regard to the June 15 hearing in which it emerged that Mr Power had mistakenly paved the way for minority stakeholder Mr Morfuni to take over Swindon Town.
Mr Power, who owns an 85 per cent stake in the County Ground side, issued a transfer notice on May 17 indicating his desire to sell his shares in holding company Swinton Reds 20 to Able at £2,500 a share.
Axis, a 15 per cent shareholder in the club and owned by Australian property tycoon Clem Morfuni, was told it could bid for 13 of the 85 shares Mr Power hoped to sell to Able.
But by the end of May, the minority shareholder made a counter offer for all 85 of the shares, claiming that a clause in its shareholder agreement – or articles – entitled it to make the bid. Mr Power subsequently withdrew his transfer notice.
On Friday, a High Court judge once again upheld the legality of the Axis offer for the 85 shares. He said that in drafting the offer notice the directors had erred in their interpretation of the articles of association – the agreement between the shareholders – and Axis should now be offered the chance to acquire all 85 shares.
The judge has retained injunctions which stop Town being placed into administration.
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