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CPO powerless over shares error

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Steve Frankham has revealed that steps have been taken to avoid another shares oversale controversy

Steve Frankham has revealed that steps have been taken to avoid another shares oversale controversy

Steve Frankham has revealed that steps have been taken to avoid another shares oversale controversy

Chelsea Pitch Owners have insisted they are powerless to void the shares oversold in the company before October's vote on the future of Stamford Bridge.

But CPO directors also proposed several measures to prevent a repeat of the controversy that has dogged the fan-led group since last year's stormy general meeting.

CPO chairman Steve Frankham insisted steps were being taken to address a problem that was caused unwittingly. He said: "We have carried out an extensive review and cleaned up the shareholders register and are considering options for improving its ongoing maintenance."

Among the six possible causes of action outlined was writing to all holders of the relevant shares asking if they wish to put their shares up for sale to other/new shareholders.

Another option is to write to the relevant shareholders demanding information with regard to their holding including details of any person they are holding them for, and remove the voting rights of any person who fails to respond.

Further possibilities are banning the holding of shares in the company by any person who is an officer of/employed by/connected with the club and require full disclosure of identity on application for shares including proof of address.

The final two suggestions are limiting the voting rights attaching to a holding of shares, regardless of the number of shares held and reviewing the issue of shares with regard to process, intention and formality to see if any aspect could lead to a declaration of invalid issue.

Frankham went on to say: "We had already suspended the transfer of shares in order to prevent possible misuse.

"I have worked with Bob Sewell for many years and worked with Rick Glanvill, who is well-known to many CFC supporters, for the last six months or so. We have discussed at length the share sales process at the time - during which, don't forget, the previous Board was receiving constant legal counsel.

"I would like to put on record that I am convinced that although, as they have already admitted at the AGM, the shares oversale was a serious error, it was not knowingly carried out by them."

PA