14.1
If an Insolvency Event shall occur in relation to any Club that
Club shall be deducted 10 points. The deduction shall be made forthwith
on the happening of the first Insolvency Event.
Rule 14.2 Where a Club takes or suffers an Insolvency Event:-
14.2.1 during the Normal Playing Season but prior to 5:00 p.m. on
the fourth Thursday in March, the points deduction shall apply immediately;
14.2.2 during the Normal Playing Season but after 5:00 p.m. on the
fourth Thursday in March then Rule 14.3 shall apply; and
14.2.3 outside the Normal Playing Season, the points deduction shall
apply in respect of the following Season such that the Club starts
that Season on minus 10 points (including a Club or Clubs Relegated
from the Southern Football League, where such Club shall be subject
to Rule 14 of the Southern Football League Rules).
14.3 Where the circumstances set out in Rule 14.2.2 apply and at
the end of that Season, having regard to the number of Competition
points awarded (ignoring any potential deduction):-
a) the Club would be relegated in accordance with The Southern Football
League Rules, the points deduction will apply in the next following
Season; or
b) the Club would not be relegated as aforesaid, the points deduction
will apply in that Season and Southern Football League Rules will
then apply (if appropriate) following the imposition of the points
deduction.
14.4 For the purposes of this Rule 14
a) where any Insolvency Event is taken or suffered other than on
a Business Day (as defined by the Insolvency Rules 1986 as amended
from time to time) then for the purposes of determining the timing
of any points deduction only the action taken or suffered will be
deemed to have been taken or suffered on the immediately preceding
Business Day; and
b) if a Company Voluntary Arrangement is approved, then approval
of that Company Voluntary Arrangement shall be deemed to have been
given at the date of the first meeting of creditors called to consider
that Company Voluntary Arrangement, and not the date of any adjourned
meeting of the creditors or the meeting of shareholders
14.5 For the avoidance of doubt, where a Club is subject to more
than one Insolvency Event (for example Administration followed by
a Company Voluntary Arrangement), the Club shall only be deducted
one set of 10 points, such deduction to apply with effect from the
first Insolvency Event.
14.6
The Competition shall serve the Club with written notice of the
points deduction (the ‘Notice’).
14.7
A Club may only appeal against an automatic deduction of points
on the ground that the insolvency proceedings
arose solely
as a
result of a Force Majeure event (the ‘Appeal’). For the purposes
of this Rule 14, a ‘Force Majeure’ event
shall be an event that, having regard to all of the
circumstances, is
reasonably
considered to have been unforeseeable and unavoidable.
14.8 Any Appeal must be in writing and be received by the Competition
at its registered office no later than 7 days after the Competition
serves the Notice. The Appeal must contain a statement setting out
the grounds of appeal and provide copies of any documentation upon
which the Club intends to rely in support of the Appeal.
14.9 The Club must also lodge with the Competition, at the same time
as the Appeal, a deposit fee in respect of the costs of the Appeal.
14.10 Upon receipt of the Appeal the Competition Secretary shall
refer the matter to an SSAP by delivering to the Chartered Institute
of Arbitrators (or such other body as the Board may from time to
time determine) five copies of the appeal documents together with
a request for the appointment of Arbitrators as set out in 14.9 hereof.
14.11 The SSAP shall consist of three Arbitrators, one of whom must
be a barrister (or solicitor) of at least 5 years call who will act
as Chairman of the SSAP, each to be appointed by the Chartered Institute
of Arbitrators (or such other body as the Board may from time to
time determine) as provided above.
14.12
The Competition shall, immediately upon receipt of the Appeal,
instruct a firm of independent
accountants
to carry
out a review
of the Club’s activities for the purposes
of preparing an independent report into the
circumstances surrounding
and leading
up to the entering
into insolvency proceedings. The Club shall
meet the costs of preparation of that report
in any
event.
The
report
shall be
provided to the
Club, the SSAP and the Competition. The SSAP
shall take into account the contents of that
report when
determining
whether
the insolvency
proceedings arose solely as a result of a
Force Majeure event.
14.13 Both the Club and the Competition shall be entitled to make
representations to the SSAP. The SSAP shall use all reasonable endeavours
to hear any appeal within 21 days of the lodgement of the Appeal.
14.14 The SSAP shall have the power to:-
14.14.1 Confirm the deduction of ten points; or
14.14.2 Set aside the deduction of ten points and substitute a deduction
of such lower number of points as it shall deem appropriate; or
14.14.3 Order that there shall be no sanction at all.
14.15 The decision of the SSAP shall be final and binding. Any
costs incurred by any party in appeal proceedings brought before
the SSAP shall be met by the Club in any event and shall be considered
as a sum due to the Company.
14.16
Any sanctions imposed pursuant to these provisions shall not
be taken into account in respect of any other sanctions, penalties
or fines that may be imposed by the Competition in respect of any
breaches of its Rules, Regulations or Articles of Association by
the Club.
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