Difficulties with Share Register

Hereford United has so many small shareholders that efforts to update the register are fraught with problems and because of these difficulties calls for the club to raise money through a share isssue are unlikely to happen.

It is beleived that there are over 1,000 names on the register with Graham Turner having the highest individual number of shares.

But there are hundreds of names with just one share.

Many years ago, probably in the 1950's, shares were sold to supporters on the gate. This explains why there are so many shareholders with just one share. And to make matters worse it is understood that not all these names were recorded.

The shares were sold for just 25p each or five shillings at the time. It is beleived all 40,000 shares were sold at that time raising £10,000 for the club.

Over the years it appears that the share register has not been kept as it should have been, partly because of the work involved with so many small shareholders.

The cost of sending out the Annual Report must cost a fortune as every person on the register receives this report, including those with a single share. Around £500 was spent purely on postage for the reports to be sent out this year, and then there is the cost of printing as well to be paid for. Sources say that the club had over 100 returned to them "not known at this address" this year.

There have been calls to look at a new share issue for the club. If successful it could raise a six figure sum. However the present shareholders would have to agree to the move by a substantial majority and that seems unlikely as many can't be traced.

In the circumstances the directors are expected to keep matters as they are. It may suit them as no-one would be likely to purchase shares other than as a gesture of support for the club.

The total holding of shares by the directors is thought to over half of those that can be traced.

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