Ibrox Stadium

Next Game

Rangers v Kilmarnock

Sunday, 30 November 2014, 12:45

Scottish Cup Fourth Round

Last Game

Hearts 2 - 0 Rangers

Saturday, 22 November 2014, 12:45

Scots Champ

Whyte's 'false' Ticketus claim

A judge has ruled that former Rangers owner Craig Whyte gave "false" information to Ticketus regarding his director disqualification.

Last Updated: 15/04/13 at 19:56 Post Comment

Craig Whyte: Former Rangers owner gave 'false' information to Ticketus,

Craig Whyte: Former Rangers owner gave 'false' information to Ticketus,

A 28-page judgement delivered at the Chancery Division of the High Court in London earlier this month, seen by Sky Sports News, found that Whyte had failed to disclose the ban to the firm.

Master Marsh awarded Ticketus £17,683,338 in damages on 5 April 2013.

Whyte has told Sky Sports News that the judgement "is being appealed" and declined to comment further on the ruling.

The court heard, by 28 February 2011, and prior to the Rangers takeover, Mr Whyte had not completed a Directors' Questionnaire, or at least had not returned it, to Ross Bryan, an investment manager with Octopus Investment Limited, an FSA regulated fund management company responsible for sourcing, organising and managing investment opportunities on behalf of Ticketus.

Mr Bryan held discussions with Mr Whyte over season tickets between 2011/12 and 2014/15.

At 11.21 on 28 February 2011, Mr Bryan sent an email to Mr Whyte: "Craig - I don't have your director's questionnaire. Much of it would be n/a I imagine, but most relevant are: (a) Have you ever been disqualified as a director (b) Has a company you were involved with been investigated or inspected by the LSC, FSA or other financial regulatory body."

The court heard that at 15.03 the same day Mr Whyte replied to Mr Bryan: "I have attached the directors questionnaire. I'm not near a scanner right now so it's unsigned. Let me know if you need anything else."

The court heard how answers to two questions in the Director's Questionnaire were key to the case involving Ticketus.

Question 6.3 asked: "Have you at any time, in connection with the formation or management of a company, partnership or unincorporated association or business in the United Kingdom, or elsewhere, being accused of any fraud, deception, misfeasance, breach of trust or other misconduct of impropriety towards such a body or towards any members of such a body?

Question 6.6 asked: "Have you at any time been disqualified from working as director (or being involved in the management) of a company?"

The answer "No" appeared against each question but Mr Whyte admitted in the course of the proceedings that in, or about, 1998 claims had been brought against Mr Whyte by the liquidator of a company named Vital UK Limited for misfeasance, breach of duty and negligence, which claims were apparently subsequently settled for £150,000.

Mr Whyte also admitted that in, or about, 1998, disqualification proceedings had been brought against Mr Whyte in which Mr Whyte had been accused of the misapplication of the assets of two companies to the detriment of their creditors and have failed to co-operate with the official investigations of the Official Receiver into one of those companies.

Mr Whyte admitted that in, or about, June 2000 he had been disqualified from acting as a director by order of the High Court for a period of seven years.

In his judgement, Master Marsh said: "The inescapable conclusion on the evidence is that Mr Whyte knew his answers to questions 6.3 and 6.6 were false. But, even if I am wrong about that, he was reckless about whether the answers were accurate, and provided them not caring whether they were true. Alternatively, he was negligent in failing to check the accuracy of the questionnaire before passing it on and has failed to discharge the evidential burden on him under section 2(1) of the Misrepresentation Act."

Mr Whyte denies having made a false representation, or representations, to Ticketus and told the court that the Director's Questionnaire was prepared by his solicitors and he did not check it before sending it to Mr Bryan. He says this was not surprising as he expected his solicitors to ensure it was accurate.

Mr Whyte claimed the Questionnaire was an unsigned "travelling draft" and as such he paid less attention to it than if it had been a final document. Mr Whyte says Ticketus failed to mitigate their position.

Master Marsh ruled: "There are two points that arise. First, I have concluded that the representations were fraudulent in this case. Secondly, even if that is wrong, it was simply impossible for Ticketus to check the accuracy of the answer to questions 6.3 and 6.6 in the Director's Questionnaire."

Master Marsh, who made the judgement, is a former partner of Collyer Bristow, the law firm who previously acted for Mr Whyte at the time of the Rangers takeover.

Marsh resigned from Collyer Bristow in February 2012 before his appointment as a Master of the High Court Chancery Division from 12 March 2012.

There is no suggestion that Marsh has been directly involved with Whyte and a spokeswoman for the judiciary said: "Master Marsh was a member of Collyer Bristow LLP until 28 February 2012, before he took up his post as Chancery Master. He was aware of a claim against Collyer Bristow and therefore raised his previous connection with Collyer Bristow LLP with the parties at the outset in case in case they felt he should recuse himself. All the parties, including Mr Whyte, were content for the judge to deal with the case. Master Marsh's former connection with Collyer Bristow LLP has no bearing on the case."

Related News

Most Commented

Readers' Comments

I

sn'tthis strange. Last season we were worried that we were stuck with a Dinosaur in Moyes while Liverpool and Everton were disappearing into the distance with their young, spritely managerts, playing football from heaven. Progressive managers, they said. Managers who understand the modern game.........

HarryBoulton
Rodgers: The pressure's on

B

eing consistently and unrelentingly dog turd really takes it out of you. Try shadow boxing. That's what it's like watching Liverpool, punching thin air.

sinbadsdad
Neville: Reds need a rest

G

ood list, some crackers in there. For me, I'd have had Steve McManaman for Liverpool away at Celtic in the UEFA cup in 1997. I was in the ground that night and everyone kept screaming at him to make a pass, but he just kept going and going and going...brilliant, and in the dying minutes too.

uncle-muller
F365's Top Ten Counter-Attacking Goals

Footer 365

Champions League: Lionel Messi breaks goalscoring record as PSG win

Lionel Messi became the Champions League's all-time record scorer as Barcelona thrashed APOEL Nicosia, while PSG won.

Champions League: Mourinho hails Chelsea team performance after Schalke demolition

Jose Mourinho hailed Chelsea's "complete" performance after their 5-0 demolition of Schalke.

Champions League: Aguero treble stuns Bayern

Sergio Aguero's last-gasp heroics earned Manchester City a thrilling 3-2 win over 10-man Bayern Munich at the Etihad.

Mail Box

Counter-Attacks: Making Me Fall In Love Again

There is a good deal of love for counter-attacking goals, plus some sympathy for Arsene Wenger, heaping the praise on Chunky Pardew too early and why Klopp > Rodgers...

There's Excitement In Toon Again...

We have mails on a young, vibrant Newcastle side along with the usual woe from those in the red of Liverpool and Arsenal. We just love having the Premier League back...

© 2014 British Sky Broadcasting Ltd. All Rights Reserved A Sky Sports Digital Media property