Liverpool Echo & Everton

[davek]

@the esk
The law also says that Directors have to:
https://www.gov.uk/running-a-limited-company

• tell other shareholders if you might personally benefit from a transaction the company makes

i.e. there is a need for disclosure if one of the directors other companies is benefiting from a contract with EFC.

Ha Ha Ha Ha.

He'd have been set a good example there by the people who own the club.

 

[The Esk]

@bizzaro - there's no evidence to suggest that Everton are paying Kenyon Fraser above market rates. That's not really the issue, the issue is the potential conflict of interests between a senior officer of Everton owning 60% of a Company that provides significant services to Everton.

In these circumstances the test is can the employee act in the interests of his employer (Richard Kenyon is not a Director of Everton Football Club Company Limited) whilst owning a controlling interest in a Company offering services to that employer.

 

[Pat's Van]

@bizzaro - there's no evidence to suggest that Everton are paying Kenyon Fraser above market rates. That's not really the issue, the issue is the potential conflict of interests between a senior officer of Everton owning 60% of a Company that provides significant services to Everton.

In these circumstances the test is can the employee act in the interests of his employer (Richard Kenyon is not a Director of Everton Football Club Company Limited) whilst owning a controlling interest in a Company offering services to that employer.

Bizzo knew that Esk

 

[bizzaro]

Is there not a difference between the companies act and corp gorvernance? I was under the impression that whilst corporate governance is vital, for public limited companies its of increased significance.

I agree that there could be a conflict of interests but under the UK Corp governance code, is it not really significant only for FTSE 350 firms etc..?

Corporate governance is an umbrella term for all company law in the UK.

The CBI as an illustration - uses it for private and public companies

http://www.cbi.org.uk/business-issues/corporate-governance/

 

[roydo]

@bizzaro - there's no evidence to suggest that Everton are paying Kenyon Fraser above market rates. That's not really the issue, the issue is the potential conflict of interests between a senior officer of Everton owning 60% of a Company that provides significant services to Everton.

In these circumstances the test is can the employee act in the interests of his employer (Richard Kenyon is not a Director of Everton Football Club Company Limited) whilst owning a controlling interest in a Company offering services to that employer.

Or act in the interests of the company he is a Director of as well.... all a bit confusing really.

 

[The Esk]

Is there not a difference between the companies act and corp gorvernance? I was under the impression that whilst corporate governance is vital, for public limited companies its of increased significance.

I agree that there could be a conflict of interests but under the UK Corp governance code, is it not really significant only for FTSE 350 firms etc..?

One of the LSE listing requirements is compliance to the UK Corporate Governance Code, so for quoted Companies there is both a regulatory requirement and a legal requirement (Companies Act 2006).

For a private company with minority shareholders such as Everton I would say it is critical that the highest standards of corporate governance are adhered to.

The IOD produced a lengthy report on the benefits and requirements of good corporate governance in private companies back in 2010 if you wish to look it up.

 

[bizzaro]

@bizzaro - there's no evidence to suggest that Everton are paying Kenyon Fraser above market rates. That's not really the issue, the issue is the potential conflict of interests between a senior officer of Everton owning 60% of a Company that provides significant services to Everton.

In these circumstances the test is can the employee act in the interests of his employer (Richard Kenyon is not a Director of Everton Football Club Company Limited) whilst owning a controlling interest in a Company offering services to that employer.

There is no evidence - yet - to suggest this. However, the acid test will be to determine if the benefit to a Director of EFC is to the detriment of all shareholders in EFC.

If the club is paying above market rates for example - any shareholder could register an objection. It would look very poorly if the benefit to the director were not disclosed. In fact that is a legal requirement under the Act.

 

[The Esk]

Or act in the interests of the company he is a Director of as well.... all a bit confusing really.

Correct, although that is not really our concern.

 

[The Esk]

There is no evidence - yet - to suggest this. However, the acid test will be to determine if the benefit to a Director of EFC is to the detriment of all shareholders in EFC.

If the club is paying above market rates for example - any shareholder could register an objection. It would look very poorly if the benefit to the director were not disclosed. In fact that is a legal requirement under the Act.

He's not a Director of Everton!

 

[bizzaro]

One of the LSE listing requirements is compliance to the UK Corporate Governance Code, so for quoted Companies there is both a regulatory requirement and a legal requirement (Companies Act 2006).

For a private company with minority shareholders such as Everton I would say it is critical that the highest standards of corporate governance are adhered to.

The IOD produced a lengthy report on the benefits and requirements of good corporate governance in private companies back in 2010 if you wish to look it up.

Hang on a second.

He's Commercial DIRECTOR of EFC.

He's an officer of the company.

Therefore he's bound by the same rules as any director of the company EFC.

http://www.liverpoolecho.co.uk/spor...ws/everton-appoint-richard-kenyon-new-6834757

*spit* the ECHO link

 

[jinkyali]

One of the LSE listing requirements is compliance to the UK Corporate Governance Code, so for quoted Companies there is both a regulatory requirement and a legal requirement (Companies Act 2006).

For a private company with minority shareholders such as Everton I would say it is critical that the highest standards of corporate governance are adhered to.

The IOD produced a lengthy report on the benefits and requirements of good corporate governance in private companies back in 2010 if you wish to look it up.

Agree.
A conflict of interest is a set of circumstances that creates a risk that an individual’s ability to apply judgement or act in one role is, or could be, impaired or influenced by a secondary interest. It can occur in any situation where an individual or organisation (private or government) can exploit a professional or official role for personal or other benefit. This definition is based on generally accepted standards. Conflicts can exist if the circumstances create a risk that decisions may be influenced, regardless of whether the individual actually benefits. The perception of competing interests, impaired judgement or undue influence can also be a conflict of interest.

 

[Pat's Van]

He's not a Director of Everton!

I thought Bizzo knew that

 

[bizzaro]

You can't call someone in a company 'DIRECTOR' unless they are listed as a company director at Companies house.

Stands to reason.

 

[roydo]

You can't call someone in a company 'DIRECTOR' unless they are listed as a company director at Companies house.

Stands to reason.

Stephen Speilburg might disagree there.

 

[Pat's Van]

Hang on a second.

He's Commercial DIRECTOR of EFC.

He's an officer of the company.

Therefore he's bound by the same rules as any director of the company EFC.

http://www.liverpoolecho.co.uk/spor...ws/everton-appoint-richard-kenyon-new-6834757

*spit* the ECHO link

er....

From this point forward any links to the ECHO will be tagged by myself and others with a reminder of said boycott.