Swindon Town and the EFL have released a joint statement announcing that the club have been charged for a breach of regulations.

Town and owner Clem Morfuni have been charged for a failure to disclose that a "significant interest" in the club had been transferred.

Hollie Kiely of Swinton Reds 20 Ltd. was transferred a 17.1% voting right shareholding in the club in September 2022, but this was not disclosed until its publication at Companies House in August 2023.

Charges have not been issued over a 5% shareholding as it does not meet the 10% threshold for a "significant interest" in EFL regulations.

The punishment for the club is yet to be decided ahead of the matter being referred to an independent Disciplinary Commission.

A statement by the EFL said: "Mr Morfuni has been charged for failing to disclose to the Club’s management the transfer of a 17.1% voting right shareholding to Mrs Hollie Kiely of Swinton Reds 20 Ltd in September 2022, which led to the Club breaching the requirement to disclose to the League details of any shareholder with more than 10% of voting rights and failing to update the official club website with the details for public record."

After the initial news broke in August, it was claimed at a fans’ forum event by then-CEO Rob Angus that the documents on Companies House were a “mistake”.  Morfuni later clarified that he had been forced to transfer the shares in the club 11 months earlier to secure the funds necessary to prevent the club from being put into administration.

The shares were transferred as security against a loan of £2.9 million to cover a debenture that was being called in by former owner Lee Power and Andy Curran.

Upon this being revealed, Morfuni said in a statement on the club website that not disclosing the change in shareholding was a "mistake" and he apologised to all supporters.

The Swindon Town Advisory Board minutes said in September that Morfuni was intending on buying back the shares back, but it is "not an immediate priority as funds are needed elsewhere."

Chief Executive Anthony Hall said that Morfuni will be offering an update on the shares when he arrives back in the country later this month.

The Adver reported in September that Swindon were under investigation by the EFL for "various matters" and it was understood that they were taking particular interest in matters relating to ownership and transparency.