4. Question from Art McGuiness - How many of the potential investors have shares already?
Mark Gallacher: Two.
5. Question from Bill McIntosh - What about in 10 years time? Where will we be then?
Scott Glenday: Many of the directors in the 1st division can’t see past the end of the month. We’re planning for next year and the year after already.
Mark Gallacher: some Financial Directors in this league have sleepless nights about paying the wages.
We’ve the football debt and PKF as mentioned earlier. HMRC have a £25,000 bond for tax but we pay them on the button. We have trade creditors, like other businesses, who are paid at the end of the month.
Harry MacLean: we’ve pulled back spending as much as we can, but this season and next, due to PKF/player debt it’s not possible to run completely at break-even. We’ll get to next summer no problem, but without investment something will need to be cut to allow us to keep up payments.
Bill McIntosh: can we get money in without dropping share %?
Scott Glenday: the Society cannot afford to match investment – given the current shareholding it’s likely that around £40,000 investment would drop shareholding below 50%.
Mark Gallacher: It’s very unlikely to lose a vote at a General meeting with 40% shareholding.
Scott Glenday: if we get £500,000 in and the Society Shareholding drops to around 38% we’re still in a great position, we’d have the £500K, plus a broad base of Dundee fans owning shares in addition to the Society and the Business Trust.
Alex Kidd: as long as we don’t see another Calum Melville scenario. It got out of hand, please make sure the Society and Club guards against the same scenario playing out.
6. Question from Ron Hill - Numerous figures have been mentioned – vote is 50%, Mark Gallacher mentioned 40%, Statement said 38% - is there a limit to which the shareholding cannot fall below?
Fraser MacDonald: it’s really down to the members raising money. Once below 50% there’s no mechanism to block further dilution other than keep raising money and buying up shares. The question may come up again with a different % but at the moment it would be down to the membership. There’s nothing in Articles of Association to say we have a minimum shareholding.
Ron Hill: it's a short-term decision then? Voting on diluting the shareholding with no further control over the future?
Scott Glenday: We’re as strong as our membership want us to be.