The Glendale Trust board of directors received a valid requisition from a group of members which sought to elect a new board for the Trust.
This meeting will take place in the Glendale Community Hall on October 27th 2018 at noon.
When the current directors of the Trust received this notification, they took the decision to organise the General Meeting as requested and issued a statement that they would no longer continue to carry out any further work for the Glendale Trust until a new board was elected.
As part of this process Highlands and Islands Enterprise was informed and they have asked that the following update be issued to the members of the Trust and wider community.
This is to clarify the current position.
- The current (3) directors have obligations to the company (The Glendale Trust) and must follow due legal process with respect to the General Meeting and election of a new Board if so desired.
- As a member of Development Trust Association Scotland (DTAS), the company can access legal advice – the company cannot act without active Directors to manage due process.
- If the company cannot or does not elect a new Board of Directors, there will be implications for the financial obligations to HIE in respect of all grant funding paid to date, which is still within its period of obligation.
- The approved funding for a development officer will not be released and will be withdrawn.
- Given the potential implication for the return of HIE grants, it is highly likely that other funders could exercise their right to the return of grants paid and you should familiarise yourselves with any details regarding other grant funding received by the company.
- In addition to the risk of returning grant funding, there is concern that the commercial lease in respect of Meanish Pier, which is expected to generate income for the company via its trading company, could be at risk as the lease has not yet been finalised.
- There is an understanding that an application has been progressing with the Scottish Land Fund and the Scottish Land Fund have now been made aware of the current situation.
- If new Board of Directors can be elected, it does not guarantee the development officer funding. HIE will require to review the capacity of new Directors to deliver the agreed project(s).
The current directors have agreed to continue as directors if the General Meeting on the 27th of October is not quorate or if a new board can not be elected. All three directors will step down formally from office to ensure those willing to stand as directors can continue to deliver the projects agreed by the community and complete the mandate agreed at the last General Meeting.
For directors who may wish to be nominated for election please can a nomination form be completed and returned by Friday 26th October 2018