How Resolution 12 became Resolution 11

As regular readers will know your humble correspondent has been following the Resolution 12 saga since before it was…well…a resolution.

The Celtic AGM is on December 14th, and the issue is back again this time as Resolution 11.

You can read it here on pages 8 and 9.

The club response somewhat troubles me:

Board Response As stated in 2013, the Board is committed to protecting and promoting the interests of the Company, having regard to, among other things, the principles of fairness and sporting integrity. Having first raised these matters with the Scottish FA in 2011, prior to the 2013 Resolution being presented, and having continued to engage with the football authorities over the following years, Celtic continues to have regard to those interests and principles. Celtic has consistently called upon the football authorities to ensure that fairness and sporting integrity are at the heart of football governance. The Board of Celtic will continue to seek to ensure that these principles are safeguarded and shall continue in constructive engagement with the Scottish FA, the SPFL and UEFA to that end. The Board has taken, and will continue to take, appropriate steps to protect and promote the interests of the Company. The football governance environment has developed substantially over the past 10 years and the Company will continue to monitor the application and effectiveness of these systems of governance. The Company was disappointed when the Scottish FA declined to investigate the issues referred to and was surprised when the Scottish FA determined not to continue with proceedings, which it had itself opened. In respect of the particular issues now raised, the Board has engaged with the requisitioning shareholders and will engage with the relevant authorities as appropriate in the interests of the Company, providing an update when possible. In the circumstances, therefore, the Board considers the resolution to be unnecessary and recommends that you vote against it.

 RECOMMENDATION ON RESOLUTION 11 In the circumstances the Board considers the resolution to be unnecessary and recommends that you vote again

Dear reader, if the Celtic Board had behaved differently after November 2013 (when R12 was presented to the club’s AGM)  then, there would be no need for R11.

Everything that has transpired since then screams that further action is very necessary indeed.

For some reason or other, the Celtic Board appear reluctant to take this one on.

The chaps at Hampden must be very grateful that the Bunnet has left the building.

Back in the day no one or no organisation was allowed to damage his business without some payback.

The men in the Parkhead boardroom want this issue to go away.

It will not.

Developing story…

21 thoughts on “How Resolution 12 became Resolution 11”

  1. Like another poster on here…I too gave up my cherished Season Book in ” protest ” at the Club’s disgusting behaviour re. Res. 12….and I am proud that I did…and even prouder that my Grandson backed me to the hilt…by refusing to take mine.
    But this issue will not be resolved until the ” faithful through and through ” element of the support, drop their blind allegiance and join in the criticism.
    The response to Res.12 is something I would expect to see in China or North Korea…not in Parkhead.
    Also, like others have said, the Club is complicit in the 5 way agreement and all that it means…and I knew the baw was on the slates when our esteemed Chief Shareholder gave his public blessing to the Club from Govan…!!
    Wow…there’s nowhere to go now after that.
    I sincerely hope it is a developing story Phil…but I’ll be honest and say…Nae chance.
    Oh and just to prove that things possibly don’t change that much…
    It has been alleged that a first team Sevco player invited some other first team players and two fringe ones to his birthday party…but he and the other first team players didn’t turn up…leaving the two fringe players to incur the wrath of Glasgow’s finest.
    Couldn’t possibly be true…could it ?

    Reply
  2. Mr Mac Giolla Bháin – This article was brought to my attention. We produced a report relating to this subject matter which went to certain Celtic shareholders who had requested it. This was then provided to the Celtic Board who acknowledged receipt of it. It was then, we understand, provided by Celtic to the SFA. The report contained among other things, references to court documents containing allegations of systematically misleading the auditors (who provide the assurance reports related to the filings) and acknowledgement by financial experts (Saffery Champness) on behalf of the Club that the current business model needed to be drastically altered as it could not survive a season with no European Revenues – the very thing FRR is designed to protect from. We received no communication of any sort from any football club or the SFA regarding the contents or the serious concerns highlighted within.

    We would like to express our view that the actions of Celtic PLC with regards to this matter seem entirely like lip service to the principles claimed to be held. As a case in point: when their Glasgow rivals felt there was underhand treatment within the halls of power of Scottish football, they took it upon themselves to have a detailed report commissioned examining such evidence and put on record. Without issuing any sort of opinion on the respective merits of both complaints, one of those Clubs clearly and publicly took their fans concerns on Board and acted, prompting a clear course of action to evaluate the relevant merits. The term ‘engaging’ can for example be applied to forwarding on rather than investigating concerns to allow those who are at fault to establish their merits instead. Is that safeguarding principles they claim to hold though?

    Our own concern is less with culpability of the past and more with how things can be improved going forward. This starts with acknowledging the abject failure of the SFA to address this matter at the time and its inability to hold itself to scrutiny – preferring instead a botched attempt to pin it all on the old board of Rangers. Action by Celtic if genuinely seeking a resolution could simply not be ignored, but does not appear to be the desired course of action. The inaction of the board is tacit acceptance that this will stay buried and leads inevitably to the question: what was the ‘pro quo’ that the Celtic Board got for this ‘quid’? Share value at Celtic increases with a Rangers to play against, a run of titles, the chase and more control including one’s placemen in key functions.

    We would also take issue with the claim that football governance has made great strides forward in the last 10 years. Aside from the continuing back room dealing and back scratching swaps… no lessons at all appear to have been learned by the authorities about the dangers of allowing clubs to run continuously on the finest of margins and in perpetual risk of becoming a casualty of circumstance… be that in the form of a change in the availability of finance, a drop in budgeted revenue without the reserves to bear it or the fallout of a pandemic. We continue to lurch from Setanta collapse, to credit crisis, to the catastrophic failure of the ‘Old Firm + some’ business model, to inability to deal with no crowds…. all without dealing with the common problem – management of risk of financial failure. Our football institutions cannot continue to be allowed to be abused and at perpetual risk of collapse with no central body ensuring their financial security for future generations. We have written extensively on the subject of risk and football and the lasting effect it had on the Scottish game in this series of articles https://fanswithoutscarves.org/2019/02/22/stigma-in-scottish-football-intro-and-part-1-too-big-to-fail/amp/.

    When we spoke with Mr Doncaster directly about whether he would consider implementing a version of domestic FFP, the response was simply that the clubs would never vote for it. Would the fans vote for it? Should it be in the clubs hands alone given the conflict of interest? Where exactly are these great strides in governance? No framework for the betterment of football can have any credence while it works in the dark away from scrutiny and protects only the interests of club owners. This extends to the SFA clearly too. Even before COVID, when ICT were showing signs of financial distress, we asked again and were met with the same response. The role of Mr Doncaster is to be the face that does the clubs bidding, not the betterment of the game, and one does not last long in that role forgetting whose payroll you are on. If truly improving the governance is an ideal of Celtic, let them champion proper reform by bringing all stakeholders into the fold rather than just club owners. Fans will never have a better opportunity to make their wallets heard than they do right now.

    Reply
  3. Would it be fair to say then, that the only possible recourse, (assuming Res.11 is voted down),

    is for the Minority Shareholders to sue the Board, for e.g. ;

    – lost company income, and/or
    – fraud on the minority, and/or
    – negligence in executing their fiduciary duties?

    Sue for a token amount – with the intention to have the truth delivered in a civil court?

    (Not a lawyer but curious to learn what options – if any – are available.)

    Reply
    • Imo it is not fraud. Lost income would be difficult to prove as any income lost (potential or otherwise) could be balanced against board members opinion that if they raised it to UEFA and the SFA were found at fault we could loose money due to a Scotland wide club ban from European competition. Fiduciary duties is so ambiguous and the same argument could be taken by looking at future earnings not just for 1 year accounting period. They could even argue that if they complained and Rangers had their membership revoked as a punishment for a fraudulent EUFA license application that this would also cost us more money over a number of years…

      The truth is already out there but as we saw from the Sevco court cases even when the truth is on record and makes a mockery of SFA decisions these are not re-visited.

      A civil case against the SFA might be more intriguing as their actions (or inaction) could be argued to have cost us money and their responsibility was not to any company but to govern according to rules… ?

      Alternatively what about the old co directors who submitted the misleading application as per the court records?

      I’d rather we directed any action outwards than inwards (especially this season of all seasons) as whilst I may disagree with the boards decisions they are not the guilty party in this whole mess – or at least not the main one!

      I’m sure Auldheid and co are taking legal advice and exploring all possibilities and once this resolution fails at the AGM hopefully they will keep up the good fight and crowd fund as required to take this forward in any way possible.

      Also not a lawyer, just my 2 cents worth.

      QB

      Reply
  4. The key phrase is in the official statement;

    “The Board is committed to protecting and promoting the interests of the Company”

    Never believe that the “Company” means the fans. It serves to protect the business interests of the shareholders, principally the largest one, Dermot Desmond.

    They are complicit in the stitch up that was the 5 Way agreement and will do nothing that will cause issues to their business model.

    Reply
  5. It is well known that Lawell saw Cedric’s financial well-being linked to that of rfc(IL) he was party to the ‘arrangements’ that enabled the yo-yoing of titles after 1998. Chick Young disclosed as such dressed up as a footballing insight which we now know was a morsel of moonbeam succulent lamb. Lawell’s hands are dirty, any further action on this will reveal just how badly that is through sfa and Phoenix club board members playing their joker.

    Reply
  6. Scream for further action in this matter till doomsday, but nothing will happen
    Celtic are in this up too their necks and they are hiding things and treating our support like morons

    Reply
  7. When will you wake up to the fact that Celtic and Sevco along with the GFA ( Glasgow Football Association ) are in cahoots? Celtic know where the bodies lie , Sevco have the evidence in the 5 way agreement and the GFA are lickspital dogs bodies who are only interested in their own pay packet.
    Celtic will not rock the boat as it will impact on their own finances. Bigotry sells tickets and merchandise.
    Celtic were the only club to lose money when Sevco were shoehorned into the lower leagues. There is a cabal in Scottish football and it’s run by two clubs. Both of them unwilling to admit they are Scottish, playing in a Scottish league.
    Time to wake up and smell the coffee, Celtic will do nothing that will cost them money, even if the fans want it, or even demand it.

    Reply
  8. It must be the cynic within that makes me wonder what the response to the Frimpong incident with Cole at Motherwell would have been if that tackle had ended such an important “asset” like Jeremy’s career?
    I firmly believe that the constant heavy attention on Tierney speeded up the process of him moving on by a year or two.
    Generally clattered in the opening minutes of games most of these “challenges” went on with impunity as he was scythed down or caught by a stray elbow week in week out.
    If this is allowed to continue someone is going to get badly injured.
    Dallas Jnr has nowhere to hide on this one and neither have his handlers.
    Shocking scenes as he lay there in real pain.
    Now imagine that was Brown or Duffy on Kent…Yellow card?

    Aye right.

    Reply
    • The display by Dallas throughout the entire game was nothing short of appalling. Giving phantom corners to the opposition and denying blatant corners to us. I lost count of the number of freekicks awarded around our penalty area for the most innocuous challenges and the number denied at the other end for what amounted to assaults.

      Even obvious throw-ins being wrongly awarded. People say they’re not important, but they are. EVERY decision in a game is important, particularly if possession is constantly being gifted, wrongly, to one side.

      It was BLATANT bias.

      The old saying is very true. The apple never falls far from the tree.

      Reply
      • I totally agree on all of that bud but I am also of the opinion that had Frimpong been rendered injured for the remainder of the Season (or worse) our Board would have been screaming blue murder.
        As it is our young emerging talent has simply been given a wet sponge and told to get up and on with it.
        Much like KT was told to do whilst playing throug excruciating pain with his condition.

        Reply
  9. See also Note 1 on Page 4.

    The … ‘AGM’ is to be held as a ‘closed’ meeting and shareholders will not be able to attend…. The outcome of the resolutions …will be determined by the proxy votes received ahead of the meeting. We therefore strongly encourage all members to APPOINT THE CHAIRMAN OF THE AGM as their proxy to vote on their behalf at the meeting. Please do not appoint any other person as your proxy, as he or she will not be able to attend the AGM or vote on your behalf.

    So if you’re not on the board you can’t attend and if you don’t attend you can’t vote (unless you vote the same way as the Chairman)!!

    Democracy?

    Reply
    • No, this is standard practice and you dictate the way the Chairman must vote.

      This is the way I and probably the majority of fan shareholders vote and its a legal requirement that they vote the way you want.

      Reply
  10. Was there not once a song with the line, “Sit down you’re rocking the boat!”

    That line flashes through my head every time I see “Resolution 12” and “Celtic Board” in the same paragraph.

    Reply
  11. The only way the board will act on this is if we fail to win 10iar and fans revolt at Season Ticket renewal time. Only at that point will listening to the fans be “in the interest of the company”.

    Reply
    • Sadly, I agree and the fact that STs are sold out for this season, when there’s going to be not many, if any, games to attend shows why.

      I would expect some blowback if the 10 isn’t achieved but, in that circumstance, the board will invest in the team including management and a winning start to next season will mean that enough fans will be back on side for the board to rest easy again.

      There’s no criticism of fans, who’s faithfulness is being abused and the tortuous decision of turning your back on the team you’ve loved and supported all your life is just to big a step to take for most.

      Reply
  12. This is precisely the reason I gave up my 2 season books and stopped buying any official merchandise. This plc don’t give a fuck about sporting integrity or you or I, they only want your cash. I would urge all Celtic fans who aren’t happy with the way the club is being run to take the plunge and stop handing over your hard earned cash to these charlatans. It’s hard to break the habit of a lifetime I know but it’s the only thing the plc understands. Otherwise you’re paying top dollar to watch what’s basically a form of WWE.

    Reply
  13. Surely there must be a Fergus Mark ll amongst that spineless lot who will speak up for the Club. Bogus quarantines and criminally dubious refereeing are being blatantly used against us with impunity in a no holds barred attempt to keep us from the Ten. Come on Lawell and Desmond, “Grow a Pair!”

    Reply
  14. Surely there must be a Fergus Mark ll amongst that spineless lot who will speak up for the Club. Bogus quarantines and criminally dubious refereeing are being blatantly used against us with impunity in a no holds barred attempt to keep us from the Ten. Come on Lawell and Desmond, “Grow a Pair!”

    Reply
    • First question from the floor at the AGM. Is to Peter Lawwell are. Rangers a new club formed in 2012 and the next question is to Mr Riley why did he not report. the Email he received to Peter Lawwell

      Reply

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