Rebel Albion shareholders have applied for an injunction against the club in London’s High Court.
Mr Justice Patten began hearing the shareholders’ case for an interim injunction to halt chairman Jeremy Peace’s controversial share consolidation plan.
The case was due to finish this afternoon, with a group of the club’s shareholders aiming to put a temporary stop to the consolidation proposal, which Mr Peace forced through at the club’s recent annual general meeting.
Shareholders are unhappy at the scheme to turn 10 current shares into one consolidated share.
It would force those with fewer than 10 shares to ‘round up’ their shareholding at a cost of up to £720 or be forced to sell their stake in a tender process.
Is the deadline for shareholders to apply for extra shares to round up their stake with the consolidation officially due to take place next Friday.
A successful application for an injunction would put the process on hold pending a full court case, which could take several months to organise.
Edward Carter, who has been appointed as spokesman for the independent shareholders, confirmed the case had begun at the High Court in London but was adjourned. The arguments have since resumed.
Mr Carter said: “There isn’t a lot to say at the moment but we will be making a statement when there is a decision.”
Shareholders who choose not to ‘round up’ their stake to multiples of 10 will have their odd shares put into the tender process, with other shareholders invited to bid for them.
Mr Peace will buy any left over shares at £80, leading to accusations from the small shareholders that he is attempting to increase the size of his majority shareholding ‘on the cheap’. They also accuse him of disenfranchising small shareholders.
Last week, Mr Peace said: “The board has gone to great lengths to ensure shareholders have the opportunity to retain their interest in the football club or get the best possible price for their shares.
“I want to make it crystal clear that despite media reports to the contrary, I shall only be purchasing consolidated shares if other shareholders do not want to buy them at £800 or above.”
A club spokesman said they could not comment, as the case was ongoing.
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