Tag Archives: Phoenix Companies

How Section 216 of the Insolvency Act Could Prevent “The Return of Dave King” to Rangers

We almost seem to be having déjà vu when it comes to Rangers, yet again! A tweet from @Corsica1968 prompted me to have a look at Section 216 of the Insolvency Act 1986.

It looks as if that section would potentially be enough to prevent the involvement of Dave King in Rangers for 5 years from 5th November 2012 onwards. It would also prevent John Greig, for example, from re-joining the Board.

The section relates to the re-use of a company’s name where it has gone into insolvent liquidation. The mischief the section is designed to stop is that of companies “dying” and leaving its debts with the oldco only to be resurrected a couple of days later as a newco but under the old trading name and with the same directors in charge. It can be legitimate to do so after a process of administration – but not when being “pre-empted” by the directors. Continue reading

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Filed under Insolvency Act 1986, Rangers

Can “Rangers” Play as “Rangers”? What’s In a Name?

Various suggestions have been flying about teh Internetz regarding the possibility that Sevco Scotland Ltd’s team ought not be allowed to play under the name of Rangers.

This is suggested to arise from differing sources.

Some say that calling the team “Rangers” will make it a “phoenix company” and as such it would be illegal to use that name.

Others hint that HMRC would prevent the use of the old team name.

It is regularly voiced that HMRC did this with Farsley Celtic, an English non-league team which, as the story would have it, was blocked from reforming under the name Celtic.

In fact the ownership of the club had planned a name change prior to insolvency, and there was no HMRC involvement in the new name being chosen as Farsley AFC. This has become an urban myth which, like all such stories, has a life far beyond reality.

There are also rumours that calling the team “Rangers” would allow creditors of the Rangers Football Club PLC (RFC PLC) to pursue Sevco Scotland Ltd for payment of debts. Continue reading

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Filed under Football, Insolvency Act 1986, Rangers, SFA