Sports Direct is taking legal action against a Rangers supporter who applied to access the company’s shareholder register to garner support for a campaign over the use of zero-hours contracts and club merchandise deals.
Mark Dingwall, a co-founder of the Rangers Supporters Trust and fanzine Follow Follow, told Sports Direct: “I wish to canvass my fellow shareholders as to whether they would be willing to support resolutions to end the use of zero-hours contracts and to review the terms of the retail agreements with [Rangers] to ensure that these generate sales revenue that benefits shareholders.”
Sports Direct controls Rangers’ merchandise stores and many of its trademarks after a controversial deal in which it loaned money to the Scottish football club.
The fan told the Guardian: “I’m mainly interested in seeing Rangers fairly treated.” He bought a single share in the company so that he could gain the right to access the details of fellow investors under the Companies Act.
The Rangers Supporters Trust used the same tactic in order to contact shareholders in the listed football firm on several occasions and Dingwall said this had proved “an effective way shareholders could influence the club”.
Sports Direct, which is 55% owned by Newcastle United boss Mike Ashley, who has been embroiled in a tussle for control over Rangers, has applied to block Dingwall’s request with action at the companies court in London.
The legal application, set to be heard on 14 April, not only attempts to block Dingwall from accessing the share register, but also any other person who wishes to do so “where the only purpose given for the request is to enable members to be contacted, without identifying the subject matter and purpose of such contact”.
It also requests that Dingwall be liable for all legal costs, including those of Sports Direct. A letter from the retailer’s lawyers to Dingwall adds: “In order to avoid the risk of incurring those costs … we invite you to withdraw your request as soon as possible.”
“I can understand a company not wishing to hand out its share register willy-nilly, but the principle is that sensible shareholders dissatisfied with the performance of a company should be able to seek out other shareholders and canvass their opinions,” Dingwall wrote on Follow Follow’s website.
He said he had pledged not to divulge investors’ details to anyone else or contact them regarding anything other than company affairs.
“There is a point of principle here. This could set a precedent that if anyone has concerns about the running of a company they will not be able to contact other shareholders,” Dingwall told the Guardian.
The fan is now trying to raise money from fellow Rangers supporters in order to help contest Sports Direct’s legal action. He fears the costs could run into thousands of pounds.
Sports Direct declined to comment.