Club news

THE SHAREHOLDERS MEETING 2013

21 Dec 2013
Big defeat for Lendoiro as the shareholders didn’t approve all the points in the agenda. He remains as the president though, at least until January. Tino Fernández won the first battle and there’s a clear division inside Deportivo.

The first battle in the race for the elections was won by Tino Fernández; he gathered enough shares to reject the financial reports and the budget of the club, something that never happened before to president Augusto César Lendoiro. As it was expected there were many confrontations; the main one was the disapproval of the current board of directors regarding the petition to fire them, something that could cause a legal demand.

Apart from Depor’s president, the other three candidates to the presidency were present during the act: German Conchado, Manuel López Cascallar and Constantino ‘Tino’ Fernández. The ones that didn’t attend to the meeting were the administrators as they understood that the meeting was “vitiated” They sent an e-mail arguing that the report of the auditors wasn’t presented on time, so the results of this reunion weren’t legal according to their opinion. They were hammered in the meeting by many shareholders.

There were some problems before the meeting took place; many shareholders delegated their vote to candidates Lendoiro and Tino Fernández, and according to the law they could attend to the meeting though annulling their delegation, but there was a confusion as some shareholders understood that they couldn’t be in the room as they already delegated their votes.

Besides, the delegation of the shares owned by company Begano [Coca Cola bottling company], one of the major shareholders of the club, wasn’t accepted. The problem is that Antonio Couceiro is ending at the end of the month his role as the company’s general manager, so his sign in the delegation wasn’t accepted by the notary. Tino Fernández protested this decision, though in the end he still had a big support throughout the meeting.

The meeting began with a delay of an hour. The board of directors confirmed that 57,843 shares were represented, which means the 44.39% of the total, enough to make the quorum. Initially candidate Tino Fernández introduced the petition to vote in order to fire the board of directors and increase the number of members in the board to seven.

But the lawyer of the club, Rafael Chaver Rey, explained that this petition wasn’t accepted as it was already rejected in previous opportunities. Candidate Conchado spoke on this regard and said that any decision regarding this issue shouldn’t be accepted as the elections were already scheduled for January. This was one of the main discussions throughout the meeting. Tino Fernández constantly spoke asking to accept his petition and there could be a legal demand against the board of directors.



Tino Fernández before the meeting
Four were the points voted in the normal meeting and one in the extraordinary meeting, the first was the approval of the financial reports. Before the first voting took place some of the shareholders had the opportunity to talk. The first one that addressed the shareholders was Tino Fernández, who criticized the financial reports arguing that “The accountings are false.” And he assured that he wasn’t going to approve the financial reports.

Later candidate Cascallar talked and said that, “I don’t have guarantees that the crisis of July won’t happen again, we are here to valorize the past, not since the beginning, but the last year. For me the current situation cannot be approved for many reasons: the accounting doesn’t represent the reality, something confirmed by the judge; later the current administration isn’t fulfilling the expectations of the public, then the audit is reflecting the big problems of the club.”

As it was expected there were several tense moments, one of the shareholders even called the president a “thief” There were also congratulations to all the candidates and even for newspaper La Voz de Galicia, which awoke whistles among the shareholders.

Then Conchado, surprisingly measured all night long, spoke again and said that, “I am asking to not approve the accountings, but not for the previous reasons, but for the moment we are living right now. We are only a few days away from seeing the Bankruptcy Administration presenting a different accounting. I cannot accept the fact that the administrators aren’t here as they think this is vitiated, because they don’t have votes on here. The club is ours and we are the ones that should vote on this. In a normal situation I wouldn’t ask to not approve the accountings, but due to our current circumstances I cannot do otherwise.”

Lendoiro, a little upset, talked and said that, “Deportivo is passing through a situation in which we can go ahead if we don’t defend the plan of the [Spanish] Treasury. If we sign the proposal of the Treasury then we will surely disappear. Don’t tell me Mr. Fernández that you don’t know the debt with the Treasury. It’s a debt that we were forced to accept. The reality is that we cannot pay due to the last relegation, and we never had your support and neither the one of some of the newspapers, like La Voz de Galicia Right now the important thing aren’t the elections, but to vote a positive deal.”



Lendoiro and his board of directors during the first voting
Then the voting process began. The big power of Tino Fernández was felt, the number of delegated shares in him were between the 29,500 and the 32,000, which was more than the 50% of the shares represented in the meeting. In this way it wasn’t a surprise to see that the accounting weren’t approved. 32,513 shares voted that no to the first point in the agenda (56.20% of the shares represented in the meeting), 549 abstained, 2 were null and 24,779 said that yes.

For the first time in 25 years Lendoiro lost a voting process and it wasn’t going to be the last one, because he also lost the other four. Before the second voting took place there was a “mini-debate” between Lendoiro and Tino Fernández, the latter remembered that he had the majority in the meeting and that the president rejected the intention of the majority regarding the exit of the board of directors. "You are driving the club to have a battle against everybody. Please stop believing in your own tales.” He stated

The second point in the agenda, the approval of the board of directors’ gesture, was rejected with 32,451 votes (56.1% of the total). 24,956 said that yes, there were 428 abstentions and 8 null votes. The third point in the agenda, application of the earnings, wasn’t voted as the first wasn’t approved. The final point in the ordinary meeting was also rejected, which was the naming of the auditor (31,837 votes said no, 24,670 say that yes, there were 1,332 abstentions and 4 null votes).

After the ordinary meeting there was an extraordinary meeting. The only point in the agenda was to approve the budget for the season 2013/14. Once again there were more discussions between Tino Fernández and Lendoiro, while one of the shareholders requested an explanation to the extraordinary incomes of seven million Euroes. The president tried to explain the items composing this issue, from the money collected for Bruno Gama to the assurance for the relegation.

As it was expected the budget for the season 2013/14 was also rejected. 31,794 votes were negative (56.2% of the total). 24,383 votes were positive, there were 315 abstentions and 6 null votes. In this way the meeting ended after 4 hours and 26 minutes.



The meeting ended at 2AM
DECLARATIONS
The main two candidates to the elections talked to the media after the meeting. Lendoiro said that, "We must congratulate the candidacy of Fernández. Now we must prepare January's elections. I won many times and also lost many times. Nothing happens. I am more worried as only 20 days are left for the creditors' meeting."

Then Tino Fernández stated that, Deportivo need a change. We need fairness and transparency. We will search for any possible legal way to see the exit of the current board of directors. Deportivo need a change and we are that change."

CONCLUSIONS
Tino Fernández is the big winner of the day. He demonstrated his power and for the first time Lendoiro witnessed how the shareholders said no to his propositions. But the war isn’t over yet, there are around 70,000 shares that didn’t vote on this meeting and the current president has one month to convince the undecided.

Another conclusion that was evident according to the reactions of the shareholders in the meeting is that Deportivo is currently a divided entity between the fidelity to Lendoiro and the wings of changes starred by Tino Fernández. The main problem is that this defeat could affect Lendoiro’s position at the moment of negotiating with the Tax Agency ahead of next month’s meeting with the creditors.

ARCHIVE NEWS DEC/13

ZAPPING


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