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Confirmed KLD only owns 41%

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Grumpy Old Man said:
There are lots of factors here.

First thing - these are not the respective shareholdings in Sunderland. They are the holdings in Mercator. Mercator owns 100% of the club. Until we know what jurisdiction Mercator is in, what that means in relation to shareholder motions is anyone's guess.

Next thing is to look at board composition.

Sunderland - KLD, Treuer, Levin. 100% KLD.

SAFC - KLD (KLD), Treuer (KLD), Levin (KLD), Davison (KLD)), Sartori (probably KLD), Vambuca (presumed SD), Jones (?)

So, in terms of day to day control of both companies, KLD is clearly in charge.

The biggest problem is how future funding arrangements work, an area for RAWA to push at perhaps.

Above all, we need clarity from tomorrow's meeting.
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Good post. I’d imagine there’s work being done for tomorrow throughout the night at the owners end. Let’s just hope they’re as honest and as clear as is possible this time.
 
I’m not an expert in this but if KLD has the highest % of shares he has the power over the other Shareholders ( as they only have smaller % ) and each is classed as individuals.
 
Grumpy Old Man said:
None of them own shares in Sunderland. Mercator sits between.
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Precisely. That's all companies house shows a list of directors. Mercator owns the club. Am I correct that KLD owning 41% of shares in Mercator gives him a controlling interest in that company I.e. not necessarily majority ownership but a controlling interest which are two entirely different concepts?
 
Dilligaf60 said:
That’s what I could never work out about this “arrangement” why would he invest heavily knowing it was going to enrich the turd twins. I’m not a finance wallah but I’ve seen a couple of episodes of Dallas.
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That’s how investment works. Like on Dragons Den, investors buy a proportion of the company and take out the same proportion of profit/dividends or of any future sale.

If the business then wants to raise additional capital all shareholders will be asked to contribute the same proportional amount (e.g £ per share held). Or new shares will be sold to new investors, therefore diluting existing shareholders.

There will rarely, or ever be a case where one shareholder keeps putting money in and others don’t, unless they also buy more shares and dilute the others.

To me it looks like KLD is not intending to just bankroll the club, and just wants to fund it from the club’s own turnover. Which is a sensible way to run a club. A side effect is no shareholder is made proportionally richer than others.
 
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