The board ruled that Dave King had been working ‘in concert’ with the so-called Three Bears group of investors when he bought shares in the Ibrox club.
King could now be liable to buy all the shares he doesn’t own in the holding company (Rangers International Football Club) at the rate of 20p a share.
The Board ruled that King hadn’t acted as an individual when he, George Letham, George Taylor and Douglas Park bought shares in the company.
In a breach of financial rules, South Africa-based King planned the purchasing of 33 per cent of shares with the other three businessmen and should have bought the other shares at that time.
The purchasing of the remaining chunk of the 87 million shares in RIFC could cost King over £11 million.
King hit out at the ruling in a strongly worded statement posted on the Rangers website, which also defended his role in ‘rescuing’ the club.
He said: “Today’s decision by TAB is part of the price I have had to pay for being determined to rescue Rangers Football Club from its previous regime and the drastic consequences of their actions. I do so willingly.”
King added: “I do not believe that there is any substantial group of RIFC shareholders that would be willing to sell its shares in RIFC at the price at which the TAB has determined I should make an offer.
“20p is not a price that I personally believe represents a fair price for RIFC’s shares, nor is it the price at which shares in RIFC are currently trading.”