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The inherent instability of the current situation at Manchester United is that the club has had to appeal to one antagonistic shareholder and one apparently indifferent one to try and get their commercial director reinstated to the board. The board has decided to seek a dialogue with Glazer in an attempt to get commercial director Andy Anson back on the board. The club does have the right to re-appoint him, but any such decision would be subject to a vote again at the next annual meeting. An earlier vote could be called if shareholders requested an extraordinary meeting. The Irish racing tycoons, McManus and Magnier, have also been approached and it is understood that their investment vehicle, Cubic Expression, has stated that it would not object to a re-appointment. However, it is not clear whether the Irish entrepreneurs would use their votes in favour of such a move. The whole situation has raised unprecedented corporate governance issues. Directors, in effect, work for the owners of a company. In normal circumstances, the shareholders are often passive, particularly if the company is seen to have been doing well as is the case at United. Is it proper, however, for directors to act out of concert with a large shareholder if they believe that shareholder is acting against the interests of the group? United fans would say 'yes', but the corporate governance position is less clear, illustrating some of the difficulties that arise when a club operates as a commercial company.
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