I hope I can add something to the debate which might alleviate som of the concerns which have been expressed in this thread.
Before I do, I will declare my interest. I am a long time supporter who regularly attends home and away matches and who owns 10 ordinary voting shares in the club. I am not related to, affiliated to or a personal friend of any board member or any other club representative.
I have some experience with company law but am not a qualified expert so stand to be corrected on any of the following.
The purpose of this initiative is to create the opportunity for significant investment into the club by making a large number of shares available. Furthermore, the intention seems to be to make a controlling interest available to a single individual or corporate investor.
There are currently 232,000 shares in the club. 117,000 of those shares are owned by John King. This would be a controlling share but for the fact that they are designated as non-voting shares. Ownership and control of the club therefore rests with the owners of the remaining 115,000 voting shares. There are some 250+ of these shareholders including board members (past &present), sponsors, fans like me, former Australian international cricketers etc. The spread of ownership of the voting shares is such that no individual can exercise control of the club.
If the proposed course of action is to go ahead,the first thing which will happen is that the 117,000 non voting shares will be transferred from John King to Graham Rowley. This will be a private transaction between individuals, so is not something which can be voted on or affected by other shareholders. This does not put control of the club in Graham Rowley's hands because they remain non-voting shares at this time. Graham Rowley is then willing to sell the 117,000 shares back to the club for £1.00. A buy-back of share capital like this requires the support of the voting shareholders, so we are asked to pass a resolution to make this happen. If the buy back happens, the shares will no longer belong to Graham Rowley.
We the shareholders are then asked to pass a resolution to convert the 117,000 non-voting shares into voting shares. A crucial point to understand is that if the buy-back takes place, the 117,000 shares will be held by the club "in treasury". In simple terms, the club as a company cannot own shares in itself. Even if we accept to convert the 117,000 shares to voting shares, neither the board or the existing shareholders can utilise them as voting shares to exercise any control of the club. In effect these shares will be dormant until they are allocated to a new shareholder(s).
The next step will be pass a resolution to change the Articles of Association, basically the rules that govern how the club is run. The rules currently say that any issue of share capital by the club must first be offered proportionately to the existing shareholders. This would defeat the object which is to attract a new investor with the potential controlling stake of 117,000 voting shares.
Finally, we are asked to allow the directors to allocate the 117,000 shares as and when they see fit, to the benefit of the club. The goal appears to be to attract an investor to buy the controlling share. Whether a prospective buyer has been lined up, I know not. Whether this is a good idea or not is a matter of opinion. An investor with a controlling share would have the power determine the make up of the board including the chairman.
Sorry for the long post but hope it helps.