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More Boardroom Chaos
20 May 2002
Just as we thought things were calming down, all hell has now let loose in the Hawthorns boardroom. Today's Board meeting, at which the main item for discussion was who would take over from the departing Paul Thompson, ended at about 8:45 this evening after what seems to have been a major fallout.
The bottom line is that Clive Stapleton has been appointed as Acting Chairman for a three month period while the full time position is advertised and a replacement is found. However, Jeremy Peace, who was widely expected to have taken over instead, and Joe Brandrick opposed the decision - which only stood because of the votes from Stapleton, Barry Hurst, John Wile and Finance Director Bob McGing.
Peace was of the view that he should take over the role full-time, and that there was no need to advertise the position, and Brandrick agreed. Rather than take the decision lying down, Peace has now stated that Kappa Limited, whose shareholding of 29.7 percent was put in place through his involvement, will be calling for an EGM at which they will be proposing that he be named as Chairman full time and that Hurst and Stapleton be removed from the Board.
In the meantime, Clive Stapleton will be meeting with Manager Gary Megson to ensure that preparations for Albion's first ever Premiership season are not disrupted. The Board have said that they are in full support of the policies that have been in place for the last two years - "We believe it is perfectly right, indeed essential, for the Board to be involved in these matters given that the Directors have a legally binding fiduciary obligation to safeguard the assets of the Club and can only discharge these responsibilities if they are in possession of all of the relevant information". The Board also expressed their thanks to Shareholders For Albion, the organisation representing the interests of some 300 of the "small" shareholders in the Club, for their work in helping shareholders, supporters and the Directors to understand each others views.
The official statement goes on to say
"The Board would like to reiterate its commitment to ensuring that appropriate policies remain in place to safeguard the future development of the Club."
Jeremy Peace has also issued an official statement as follows:
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At a meeting today of the board of West Bromwich Albion PLC a decision was made to install Clive Stapleton as acting Chairman. This decision was not unanimous. This decision was also made after a highly public dispute involving the outgoing Chairman and the Team Manager. Despite the positive contribution the outgoing Chairman had previously made to the club, I cannot stand by and sanction the way the club is now being run. It undermines our pre-season preparations and the long term potential of West Bromwich Albion. In anticipation of today's events I have given long and careful thought to what needs to be done. Uppermost in my mind is the need to unite our fans, customers and employees behind a strategy that protects and advances the football and commercial future of the club. I have also received notice that a leading shareholder in the Albion will be requisitioning an Extraordinary General Meeting of shareholders at which resolutions will be put forward to remove Messrs Stapleton and Hurst from the board. Replacement directors to strengthen and balance the board will be appointed as soon as possible after the EGM. If the resolutions are passed, I will become Executive Chairman immediately following the EGM and this will be a full time post. There is a great deal to be done. The very first task will be to secure the services of the current Team Manager on a new contract. It is a matter of regret to me and those who support me that some on the board have shunned the restructuring of the board that has become necessary and therefore caused the requirement for an EGM. However, it is now necessary to start this process and we can only hope that the current board will move with alacrity to ensure that the uncertainty for all concerned is removed as soon as possible. |
Previous Stories:
17 May 2002: Hawthorns goes Widescreen!
12 May 2002: Congratulations, Blues!
12 May 2002: Megson under fire
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