Statement breakdown

[doggone]

No, it's not. In fact, Jackson attempted to purchase his shares through GrindCo at £4/share!

 

Also Mo was to buy Broxap's at £4/share

[geosname]

I think that the articles state that shares can not be sold for less than their sale price [5 quid a share] by the company.... I think PJ found out after his offer that he couldnt do it... bit like the golden shares

[Stone Valiant]

I think that the articles state that shares can not be sold for less than their sale price [5 quid a share] by the company.... I think PJ found out after his offer that he couldnt do it... bit like the golden shares

 

that can't be right though, becuase even in a private limited company, the value of the shares is linked to the value of the club, which is basically all of it's tangible assets, plus balance of accounts, minus existing debts!

 

Are we really saying that Port Vale is worth over £1m

[doggone]

that can't be right though, becuase even in a private limited company, the value of the shares is linked to the value of the club, which is basically all of it's tangible assets, plus balance of accounts, minus existing debts!

 

Are we really saying that Port Vale is worth over £1m

 

What geosname is saying is, if you were to buy new shares from the club they would be issued at £5 each. If however you were to buy from another shareholder, the value would be by agreement between the 2 parties.

[mighty vale]

that can't be right though, becuase even in a private limited company, the value of the shares is linked to the value of the club, which is basically all of it's tangible assets, plus balance of accounts, minus existing debts!

 

Are we really saying that Port Vale is worth over £1m

 

I'm not clued up on the accounts so can't speak for certain, but I am led to believe we have £3million debts. So that means the club value the ground and players (and any other assets the club own) together at over £4million?

 

Just as a side note, I'm looking for clarification as I'm not a financial man, because the club has £3million debts, does that mean if the ground and players (and other assets) are worth collectively less than £3million the club is insolvent?

[Stone Valiant]

Just as a side note, I'm looking for clarification as I'm not a financial man, because the club has £3million debts, does that mean if the ground and players (and other assets) are worth collectively less than £3million the club is insolvent?

 

[doggone]

Just as a side note, I'm looking for clarification as I'm not a financial man, because the club has £3million debts, does that mean if the ground and players (and other assets) are worth collectively less than £3million the club is insolvent?

 

What you describe is a position where the club has net liabilities and on paper it may look as though it is insolvent. However, if some of those liabilities are long term loans and the repayments are not due to be made until sometime in the future then the club may not be insolvent.

Insolvency would occur when the club is unable to meet its debts as and when they fall due.

[geosname]

that can't be right though, becuase even in a private limited company, the value of the shares is linked to the value of the club, which is basically all of it's tangible assets, plus balance of accounts, minus existing debts!

 

Are we really saying that Port Vale is worth over £1m

 

But they arent shares as in a company, its more like a mutual beneficial type of set up.... none profit making.... Thats why you have to be a member of V2001 to buy shares.... If Mo MS MN or anyone else didnt join/or was refused membership to V2001 they couldnt buy shares

[Burslem Academicals]

The ground and assets are valued at 3.5 million and the debts are 3.5 million

so the club is worth £1.

You cannot buy shares from another shareholder the sale and transfer of shares is restricted and under the complete control of the Board of Directors

just ask Mr Chaudry about the Broxap shareholding.

[Stone Valiant]

What you describe is a position where the club has net liabilities and on paper it may look as though it is insolvent. However, if some of those liabilities are long term loans and the repayments are not due to be made until sometime in the future then the club may not be insolvent.

Insolvency would occur when the club is unable to meet its debts as and when they fall due.

 

Isn't that the difference between insolvency and administration though. I company does not have to be insolvent in order to go into administration, merely unable to be pay currently outstandign debt, so one of the long term loans you are talking about, could be called in by the creditor, thus causing the company to be unable to pay it's bills. This is where an administrator may come in if the debtor feels incapable of resolving the situation.

[Burslem Academicals]

It is safe to say that Newton,Chaudry,Sims,Meakin are all on a blacklist and

would be refused membership to V2001...infact anyone who wants to invest apart from Ameriturf as they seem to just want to make a donation.

[fairportnick]

that can't be right though, becuase even in a private limited company, the value of the shares is linked to the value of the club, which is basically all of it's tangible assets, plus balance of accounts, minus existing debts!

 

 

Intangible assets can have a value too , particularly Goodwill ie the value of the ability to earn future profits.

 

Ie if you had a shop which, because of its location and products, made high profits say £100k pa. The shop was worth something obviously as would be the stock and fittings. You wouldnt expect to buy or sell at just the value of the shop stock and fittings.

[Stone Valiant]

But they arent shares as in a company, its more like a mutual beneficial type of set up.... none profit making.... Thats why you have to be a member of V2001 to buy shares.... If Mo MS MN or anyone else didnt join/or was refused membership to V2001 they couldnt buy shares

 

Nope, you have to be a member of V2001 because V2001 is the holding company for all assets of Port Vale Football Club. the only way that the Club could set up in a mutual beneficial way that absolved value of shares against company liquidity would to register as a charity (as you say, non-profit making) However, Port Vale (Valiant 2001) Football Club Limited is a registered privately owned company, meaning it's inidividual share value should be representative of the entire company value. However, as a private company, rather than a publicly limited company, the company and board of directors are within rights to set the value of shares themselves as they are not party to public listing and market conditions.

 

So in a way, the OP on share price is sort of correct, in that the share price can be set to any arbitary value, however, in order to accept external investment, the share price must be reflective of the overall value.

 

A good example is many of the dotCOM's that have been set up for next to nothing by a few individuals and then sold for millions later. This would be at an agreed arbitary price set by the limited company owners.

 

So on your final point your are sort of correct in that they have been refused shares, but that is because it is a limited company and a limited company has protected rights in who it cann or cannot sell parts of its organisation (i.e. shares) to!

[Stone Valiant]

Intangible assets can have a value too , particularly Goodwill ie the value of the ability to earn future profits.

 

Ie if you had a shop which, because of its location and products, made high profits say £100k pa. The shop was worth something obviously as would be the stock and fittings. You wouldnt expect to buy or sell at just the value of the shop stock and fittings.

 

I doubt that would make a huge difference in the scheme of things for Port Vale though, especially given the year on year losses being made, that must instantly wipe out that goodwill, but you are correct!

[Twitters]

I believe it's company law that unsold shares cannot be sold for less than anyone else has paid for them. So Vale can't now sell shares for less than £5.