Gold Circle wants the ring fenced R200mil but they have opposition

Nick Jonsson, “The Board have not shared any meaningful strategy with us that details how they intend to deal with this situation or that gives us any confidence in the way forward, except to ask us to release to them in excess of R200 million. This is completely unacceptable to me and others.

They are wanting us (the members) to remove any impediment in the constitution and the MOI that very cleverly safeguards the ring-fenced funds from the sale of the Clairwood property.

This is an outrageous request which needs vigorous debate and one that must be halted forthwith.

There must surely be questions asked as to the competence of the Board and Management?”

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Reply from N. Butcher, “The Board of Gold Circle has been made aware that an electronic mail sent by Mr Nic Jonsson has been circulated to all Club Members, the content of which casts aspersions on the competence of the Board of Directors and its Management.

The Board wishes to assure Members that it did not authorise the distribution of Members’ details to Mr Jonsson. This unauthorised distribution was engineered by a member of the Board, Mr Peter Gibson, who in doing so, acted in conflict with his duties and obligations as a Director, as well as in conflict with the Companies Act.

This distribution would be deemed a criminal offence had the Protection of Personal Information Act which has been signed into law become of force and effect.

The Board is proud of its achievements but cannot disregard its fiduciary duties and will have no choice but to file for business rescue should funds not be made available for the continuation of horseracing in KZN. The Board has exhausted all potential avenues of raising funds as all lenders require security which the Board cannot supply without being in breach of its Memorandum of Incorporation.”

The above are excerpts from statements, full story here

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