Kolkata: East Bengal club officials on Saturday, signed the final definitive documents and term sheet with their investors Shree Cement Limited.
Through this, the club’s sporting rights including its assets and properties would be transferred to the newly formed company Shree Cement East Bengal Foundation – a Joint Venture between the two parties.
In the new establishment, the investors will own 76 per cent share while East Bengal will have the remaining 24 per cent.
After the Extraordinary General Meeting, which was held on September 29, a section of the club members had refused to ratify some of the clauses and amendments which are present in the term sheet.
The points which were not approved initially by the members were:
“To approve that in case of differences/conflict between Club Rules (as amended from time to time) and Term Sheet / Definitive Agreement(s) entered into between Club and SCL (together with its affiliates), the conditions of the Term Sheet/ Definitive Agreement(s) will prevail.”
“The Change is proposed to allow the new entity to nominate its representative to various organization, corporate or otherwise.”
“Members’ right will not be affected. However, Members will need to follow the rules and regulations framed by the Board of New Entity for the same.”
Though now the club has signed the final documents with complete ratification from its members and the new entity will soon officially start functioning.
The Red and Golds is yet to announce their coach.