Chiang Mai Lazarus FC

Is CMFC about to rise from the dead?

Lazarus of Bethany is a figure within the Christian Bible, mentioned in the New Testament in the Gospel of John, whose life is restored by Jesus four days after his death. This is seen by Christians as one of the miracles of Jesus.

Sunday night breaking news has a new capital group (not the same it seems as the group that were reported last week) that is now visiting Chiang Mai hoping to take over CMFC as a going concern

The group plans to submit a letter withdrawing last week’s notice sent to the Thai FA of the club’s termination. This needs to be done before the Thai League 3 meeting is held at 8.30am on Tuesday 9 July.

Here is where it gets complicated. The letter to withdraw the termination notice will need either the same signatories, or a power of attorney from the signatories as the original letter.

What has changed between the withdrawal of previous investors and the knights in shining armour now marching to our rescue? And has there now been full disclosure of the liabilities?

For the as yet unnamed investors everything needs to be finalised by tonight or latest by tomorrow morning. They will need to send a cancellation email to the Thai football association tomorrow (Monday).

Some of the terms used in the Thai media are vague at best – but here is how I think this works if the company/club is dissolved.

CMFC is controlled by a private limited company of which Khun Sand is the major shareholder.

Limited liability means that the shareholder in a Thai company can only ever lose only the capital they invested. This must be the objective for K Sand.

He would call a shareholder meeting to support the dissolution. A notice is then sent to all shareholders and creditors.

A second meeting gives a green light to proceed and appoints the liquidators.

A company is deemed to continue after its dissolution as far as it is necessary for the purpose of liquidation.

Once the liquidation is completed, the liquidator shall hold another shareholders’ meeting in order to approve the result of the liquidation.

Given how few assets the club now has some the creditors will end up with a few satang each.

But saving the club means that the company continues as a going concern and any remaining creditors could make their claim on the company.

In addition any action by FIFA, such as a transfer ban, would also be against the company and the club.

Finally there is a requirement in the ThaiFA that an owner holds their new club for at least two seasons. Does that mean that K. Sand will still be the Club President? This would be bizarre for an owner who just a few days ago appeared happy to put the club into dissolution.

Personally I am tired of all this nonsense – I am tired of trying to research what is really going on. Everything about the last few months suggests that this sad saga is not yet over.