The club's biggest shareholder wants urgent measures to protect side against financial collapse.

SNS Group

Rangers' largest shareholder Dave King has called for an extraordinary general meeting in a last-gasp bid to salvage the club's future.

The South African-based businessman wants Mike Ashley's allies Derek Llambias and Barry Leach, as well as chairman David Somers and non-executive director James Easdale removed from the board with immediate effect.

As replacements, King wishes to appoint himself to the board along with former oldco director Paul Murray and John Gilligan. He requires approval from over 50% of the club's shareholders.

In a statement, King said: "I confirm that a requisition for a General Meeting has been hand delivered to Ibrox Stadium.

"The requisition consists of four resolutions for the removal of the incumbent board and three resolutions for the appointment to the board of myself, Paul Murray and John Gilligan.

"The resolutions do not seek to review the employment of the two executive directors presently on the board. They will merely be removed as directors.

"I would not have called for a General Meeting if I was not confident, from my review of the present shareholder register, that it will be supported by more than 50% of the total registered shareholders.

"While many of the shareholders hold differing views as to what is right for the club I believe that a clear majority are like-minded on one key point- the need to remove the incumbent board and to replace it with individuals who can gain the trust of fans, sponsors and the shareholder community.

"It is also desirable to partner a Nomad that is willing to move forward and away from the recent poor governance at the club. I have already had initial discussions with potential Nomads on the basis of two key conditions.

"Firstly, that the resolutions at the AGM are passed. Secondly, that the board is expanded as soon as possible thereafter to incorporate experienced independent non-executive directors such that the highest level of corporate governance is achieved and maintained.

"That is exactly what all stakeholders should want to happen after experiencing so many years of different boards that have lurched from one crisis to another.

"In advance of the General Meeting I will further engage with Nomads willing to embrace the standards that we will set for the future and ensure that an appropriate arrangement is in place to be adopted immediately on conclusion of a successful vote at the General Meeting.

"The most pressing task for the incoming board will be to ensure the long-term financial sustainability of the club.

"A secondary important task will be to conduct a forensic audit of the management and commercial contracts undertaken over the last few years to determine whether they are truly arms length and whether the affairs of the company have been pursued in accordance with the fiduciary obligations of those entrusted with that responsibility.

"Any malfeasance will be pursued aggressively and transparently. I call on all shareholders to vote for all resolutions when the General Meeting is convened."

Twenty-one days must now pass before the meeting can be convened, well beyond the end of a month which Rangers say they do not have enough cash to see out.

The move comes the day after STV revealed that Rangers had started a process which would see both Ibrox and Murray Park mortgaged out to Ashley in return for emergency funding.

In response, the "Three Bears" consortium have offered to up their £5m loan offer to ensure the stadium is not given as security to any party.

King holds a 14.57% shareholding which he purchased at the turn of the year. He has not been in Scotland since his purchase to discuss his own loan offer of £16m, a mix of short-term financing in exchange for long-term equity.

Fit and proper

The news King wishes to propose himself as a director of the Rangers board will alert the Scottish FA, who will have to judge whether he is a fit and proper person to hold such a position.

King would potentially fall down on two counts. Firstly, the fit and proper person guidelines state consideration would be given as to whether an office bearer is fit and proper if "he has been convicted within the last 10 years of (i) an offence liable to imprisonment of two years or over, (ii) corruption or (iii) fraud".

The former Rangers investor settled an income tax dispute in South Africa which saw him plead guilty and convicted of breaching 41 counts of the country's Income Tax Act. He agreed to pay £45m as a settlement.

King also had to pay a fine of just under £210,000 or else face 82 years in jail.

Secondly, King was still on the board of directors at Rangers when the old company which operated the club went into administration in February 2012.

The fit and proper guidelines state an office bearer may be blocked from being approved if "he has been a director of a club in membership of any National Association within the five-year period preceding such club having undergone an insolvency event".

The same would also apply to Murray, who resigned from the board in May 2011.

Fit and proper guidelines are intended to be illustrative and although both men appear to contravene the regulation, the Scottish FA can allow their involvement should it see fit.

Three Bears

George Letham, Douglas Park and George Taylor had previously offered £5m to Rangers in emergency funding and believe Ibrox should not be available as security to any party.

It is understood the consortium were seeking changes in the boardroom, with directors being appointed and others retired.

In a statement they said: "If we are to believe the BBC report then the board may be suffering from a bout of amnesia. A £5m funding package was offered by us after discussions with board members regarding the amount required by the club.

"If the board are now saying they need more than £5m then we are prepared to increase our funding package to begin the process of putting Rangers back on a firm financial footing.

"We hope this can be agreed soon so we can put an end to the suffering of Rangers fans who have been shown complete disregard for far too long.

"Rangers fans deserve greater respect and it would be foolish to take them for granted. They have had enough and will not take any more.

"Our initial funding offer also asked for a negative pledge on Ibrox, which is a guarantee that security over that asset couldn't be given to anyone else.

"This condition was refused by the board and we accepted this on the basis of the board's previous statements that Ibrox would be sacrosanct.

"Rangers fans, including ourselves, do not want Ibrox given over as security to anyone.

"The very notion is abhorrent to us and that it is even being considered suggests at best a lack of understanding of what Ibrox represents, and at worst a callous disrespect.

"There is absolutely no need for Ibrox to be used as security when there are people ready and committed to offer more than adequate funding while at the same time protecting the stadium.

Mike Ashley's security over Ibrox and Murray Park

Rangers require funding to ensure they are able to trade until the end of January.

The amount Ashley is willing to offer in return for security over Ibrox and Murray Park has not yet been disclosed.

Documents obtained by STV revealed that notice of security over the two properties has been given in preparation for funding to be provided by Ashley's Sports Direct.

Here is the application Mike Ashley's Sports Direct have made to take out security over Ibrox pic.twitter.com/Y6MWpdYlBn — Grant Russell (@STVGrant) January 15, 2015

Ashley currently has £3m out to the club in loans which are secured against Edmiston House and the Albion Car Park.

Here is the advance notice for security over Murray Park filed by Mike Ashley's Sports Direct http://t.co/jIjHU7EzAf pic.twitter.com/y80Rh8A4DK — Grant Russell (@STVGrant) January 15, 2015

Fans' anger

The Rangers Supporters Trust, who hold over 1% of shares in Rangers, say they are taking urgent legal action to establish if Ashley's move can be blocked and have urged fellow shareholders to unite with them to take on the businessman.

"The RST is taking urgent legal advice regarding the attempt by the board of Rangers Football Club to pass the most prized assets of the club to Mike Ashley," they said in a statement.

"We believe the board may be acting illegally on two fronts and we will be working with any other shareholder who wishes to challenge this.

"Quite frankly this latest move by the board is legalised theft and we will not stand by and watch it happen. If necessary we will instigate legal action against the directors both collectively and individually.

"We have also contacted several MPs and will be seeking political and government support to stop this attempted asset grab."

Rangers' response

In a statement to the Stock Exchange, headlined "press speculation", Rangers denied they had tied up a deal with Ashley.

"The company notes the recent speculation in the press," they said in a statement.

"The directors confirm that they are currently considering various proposals to secure the financial future of the club, however no decision has been made at this time."

Broken promises

The move to grant security over Ibrox and Murray Park comes just three months after the club's chairman David Somers rejected a funding offer from Brian Kennedy because the businessman also wanted his loan to be secured against the properties.

In May 2014, Rangers had also vowed the club's stadium would not be used to provide security on loans. They said: "For the avoidance of doubt and so that all Rangers fans are again reassured, the board has stated that it has no intention of granting security over Ibrox to anybody."

They followed that up in July with the claim: "The board is happy to reaffirm its position, which has never been a matter of debate, by confirming once again that it will not enter into any form of sale, securitisation or leaseback of Ibrox Stadium."