The East Bengal officials signed the final term sheet with their investors and formally handed over the club to the newly formed board…
East Bengal club officials, on Saturday, signed the final definitive documents and term sheet with their investors Shree Cement Limited which would transfer the club’s sporting rights as well all its assets and properties (including intellectual) to the newly formed company Shree Cement East Bengal Foundation – a Joint Venture between the two parties.
In the new entity, 76 per cent share will be owned by the investors while East Bengal will own the remaining 24 per cent.
After the Extraordinary General Meeting held on September 29, a section of the club members had refused to ratify some of the clauses and amendments which are present in the term sheet.
The points which were initially not approved by the members were:
“To approve that in case of differences/conflict between Club Rules (as amended from time to time) and Term Sheet / Definitive Agreement(s) entered into between Club and SCL (together with its affiliates), the conditions of the Term Sheet/ Definitive Agreement(s) will prevail.”
“The Change is proposed to allow the new entity to nominate its representative to various organization, corporate or otherwise.”
“Members’ right will not be affected. However, Members will need to follow the rules and regulations framed by the Board of New Entity for the same.”
The minutes of the meeting were sent to the investors and the issue of the members’ disapproval was raised. The investors reportedly wanted a complete clearance from the club members before proceeding further with the paperwork.
But now that the club has signed the final documents with complete ratification from its members, the new entity will officially start functioning.
East Bengal are yet to announce the name of their new coach. As Goal had earlier reported, Liverpool legend Robbie Fowler is the front runner to take the coach’s job at the Red and Golds.