Broncos board to face shareholders.

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</td></tr></tbody></table> <h2>&lt;HEADLINE>Shareholders move to make Broncos board account for club's $15m expenditure &lt;/HEADLINE></h2>&lt;CAPT>&lt;/CAPT> &lt;WOF>&lt;/WOF> &lt;BYLINE>By Roy Masters&lt;/BYLINE> [/I][/B]&lt;BOD> A call for an extraordinary general meeting of the Brisbane Broncos, as shareholders express dissatisfaction with the club's performance as a public company, could signal a major upheaval of the board. The Broncos' third biggest shareholder, Sydney businessman David Kingston, has confirmed he will call the meeting and seek a seat on the board. The only club in the National Rugby League operating as a public company, the Broncos have not returned a dividend to shareholders despite accumulating revenue of $15 million, twice the turnover of some NRL clubs. Kingston will challenge the leadership of Broncos chairman Peter Chegwyn, a former News Ltd financial controller. News, half owners of the NRL, is the biggest shareholder in the Broncos with a 43 per cent stake. Another Sydney businessman, John Singleton, holds 20 per cent of shares and, should he make a future takeover bid for the Broncos, Kingston, with 12 per cent, would be guaranteed a seat on the board. Singleton, frustrated by the NRL blocking his plan for a 16th team at Gosford, may redirect his passion for rugby league to the Broncos, where he maintains a close friendship with coach Wayne Bennett. Bennett has a small shareholding in the Broncos and, assuming Singleton moves to 45 per cent by acquiring the rarely-traded stock of small investors (currently 12 cents a share), the advertising guru and Kingston would control the club. Singleton is overseas on business and at this stage is said to be ambivalent about any takeover plans for the Broncos. Kingston's call for an extraordinary general meeting is independent of any takeover initiative by Singleton, but the moves could run parallel. Singleton shares Kingston's dismal view of the performance of the Broncos' three-man board of Chegwyn, chief executive Shane Edwards and Brisbane businessman Don Nissen. "I have long had reservations about clubs run as public companies," Singleton said. "The Broncos is a wonderfully run football club but a poorly run public company." Chegwyn defended the Broncos' cost structure, insisting the board runs "a tight ship", but agreed with Singleton on one point. "No football team should be a listed public company," he said. "They can't generate enough money. All I have ever tried to do is ensure Wayne Bennett has enough money to run a football club." Kingston, a 44-year-old investment banker, said: "I have written to the board offering to provide advice to the company for zero fee. "It is somewhat disconcerting a genuine offer from a 12 per cent shareholder, who has substantial business credibility and experience, to provide assistance has been rejected by Peter Chegwyn. "In those circumstances, I've called an extraordinary general meeting to do three things. "Firstly, discuss in public forum why the Broncos have a revenue base of $15 million and generate profit of below $500,000. "Secondly, review whether Peter Chegwyn is the right person to act as chairman. "Thirdly, potentially nominate other directors." Singleton admitted he was opposed to the Sydney-based Chegwyn being chairman. "I support both a Queensland chairman and Kingston being involved in running the business," he said. He also questioned the public relations value of News being involved in a franchise that spent almost $15 million when the NRL was encouraging clubs to operate within leaner budgets. The issue of Chegwyn's past employment with News has also raised questions about a potential conflict of interest, but Chegwyn said at the weekend: "I act for all shareholders." Asked how he anticipated News would respond to Kingston's call for an extraordinary meeting, the Broncos chairman said: "I could never presume to say how News Ltd would vote." However, Chegwyn admitted two recent approaches by Kingston to News, seeking support for a seat on the board, had failed. Chegwyn said: "My understanding is there have been conversations between David Kingston and News Ltd, and News Ltd said that if the board doesn't want changes, they won't support any changes." Kingston revealed an earlier meeting between himself, Singleton and the Broncos board had been held in Singleton's Sydney offices to discuss the Broncos' $15 million expenditure. "We met to discuss ways to improve the company's performance," Kingston said. "Why did Peter Chegwyn come to the meeting if he was not concerned?" Chegwyn said: "We do make a small profit but look around the league, everyone has got their hand up for something. "I don't know anyone who is travelling well, except perhaps the Dogs. "Salaries in Australia never go down, so why would footballers' contracts be different?" &lt;/BOD> [/I][/B]</td></tr></tbody></table></td></tr></tbody></table>

 

[imported_Rasputin]

This will be interesting