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Old 9th May 2020, 10.41:01   #1-0 (permalink)
Rob
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Joined: Oct 2004
Racecourse Spot: Yale Stand
Real Name: Rob
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Default WST statement: WST 'made aware of a further Directors loan'

https://wst.org.uk/wp/?p=1251

Directors Loans
Following on from last week’s communication. We have been made aware of a further Directors loan made by former Chief Executive Don Bircham. This was made by Mr Bircham as the result of a cash flow issue in May 2015. This related to a late payment to the club that season.

Mr Bircham paid the money into our account at the beginning of May and was paid back before the end of the month. The two transactions cancelled each other out and were not picked up at the time. Of course we are grateful to Mr Bircham for taking the action he felt was necessary at that time and we value his contribution to the club, not least as a long-term sponsor.

However, it is important to note that Club Board is now bound by the Governing Board and Operational Board Policy and this prevents the Club Board, or individual directors, from making individual financial decisions of this nature. The interests of members are protected by the following two clauses.

6.4 If any lending is required by the Operational Board, this must be agreed by the Trust Board.

and

6.6 Should the Trust Board be asked to authorise any spend of over one percent of the annual budgeted turnover, it should be presented with a written business case, and consideration given to sharing with the membership.

Members will note that the last instance of a short-term loan was handled in line with this policy and approved unanimously by the Trust Board at that time in 2016. There have been no cash flow issues since 2016 . This is despite the club operating without an overdraft of any kind.

Members may wish to reflect on this policy and consider any further measures they feel may be appropriate in the current period of uncertainty.