Knights name tangle
BY ROBERT DILLON AND IAN KIRKWOOD
20 May, 2011 04:00 AM
NATHAN Tinklers representatives have criticised Patrons Trust advocate Stephen Barrett for reserving the name Newcastle Knights Members Club Ltd in an apparent bid to stymie Mr Tinklers takeover of the NRL club.
The Patrons Trust had been presented as a potential alternative to a Tinkler takeover.
But an overwhelming 97 per cent of Knights members voted in favour of handing the mining magnate ownership of the club at an extraordinary general meeting on March 31.
Three days earlier, however, Mr Barrett paid $41 at the Australian Securities and Investments Commission to reserve the same company name Mr Tinkler had planned to use for the Knights, and upon which the historic vote hinged.
When Mr Tinklers Hunter Sports Group learned of their apparent oversight after Mr Barrett alerted them several weeks later they met him in an attempt to resolve the issue but it ended acrimoniously.
He was obviously a big supporter of the Patrons Trust, he was one of the main guys behind that, HSG chief executive Troy Palmer said yesterday.
This was just another one of their tactics to try to derail the transaction.
And to some extent, there was a bit of self-interest here. A bit of profiteering ... he was being mischievous and looking to profit from his actions.
Asked whether he was implying that Mr Barrett was trying to sell the name to HSG, Mr Palmer replied, I believe so.
Mr Barrett denied those claims yesterday but conceded he said at the meeting make me an offer in jest.
He said he had not tried to profit from the move but was upset because these people got up and slurred some good friends of mine in the press.
It was supposed to give them the shits and it worked, he said.
Mr Barrett said after reading the explanatory memorandum sent to members he realised the supporters club name had not been reserved with ASIC.
I thought they couldnt be this stupid, you are kidding me, he said.
So I sent off the $41 fee it was $56 with the cost of the bank cheque and registered mail and got the name until the end of this month.
Mr Barrett said he had reserved the company name to ensure the Tinkler camp did the right thing with the takeover bid.
They promised to pay out the $3.5 million in creditors and they promised to install the $10million bank guarantee, neither of which has been done, he said.
I promised to give them the name if they did what they said they were going to do but they havent.
Mr Palmer said Mr Barrett was crazy to think that his actions could force HSG to pay out the debts of the Knights immediately.
Were still legally obliged to do those things and the transaction wont be complete until we do that, Mr Palmer said.
Thats at the date of completion. We dont do it before. Once all the legal documents are completed, we are legally obliged to pay all liabilities and the bank guarantee, and once we do that, the transaction has been completed.
Mr Palmer said the naming issue was just delaying the process.
Despite suggestions that the Knights would have to call a second extraordinary general meeting, and ask members to endorse a different company name, outgoing Knights chairman Rob Tew said the impasse could be resolved by special resolution at the Knights annual general meeting, in June. Mr Tew, who brokered the deal with Mr Tinkler, described the dispute as just another hurdle.
