Dave King’s lawyer describes Rangers chairman as ‘penniless’
Lord Davidson of Glen Clova QC told judge Lord Bannatyne that Mr King didn’t have money and wasn’t able to make an offer for the remaining Rangers shares.
He claimed there was money in on shore and off shore trusts but they were in the name of Mr King’s family and he didn’t have control of them.
Lord Davidson said the court shouldn’t pass the order required by the Panel On Takeovers and Mergers because the shares were currently worth 27 pence.
He added: “Mr King is penniless. Any order wouldn’t secure compliance. It won’t. It is pointless.”
Lord Davidson also said that before making an order in favour of the panel, the court may have to hold a hearing into Mr King’s finances.
He added: “My submission is that the court should refuse the order which is sought.
“My Lord should allow the proof of these issues - one way of going forward to is to have proof of quantum of funds.
“However, my Lord is not obliged regardless of consequence to give the order sought.”
Legislation dictates that entrepreneurs who hold a 30 per cent stake in businesses are compelled offer shareholders to buy the remaining shares.
The Panel On Takeovers and Mergers started proceedings against Mr King when he failed to do so.
Advocate James McNeill QC said that financial investigators had believed they had established that Mr King acted “in concert” with three wealthy fans who are nicknamed the “Three Bears”.
He said that Mr King acted with George Latham, George Taylor and Douglas Park to acquire a 34 per cent stake in the club.
Mr King’s lawyers claim that 14.7 per cent of the 34 per cent share was held by a company which is independent of Mr King.
Lord Bannatyne will issue his ruling at a later date.