Rangers: Dave King's board wins right to convert loans into stakes in club

Chairman Dave King, right, has promised to invest £7m in Rangers over the next 18 months

Rangers shareholders have backed a special resolution that will allow Dave King's board to convert loans into larger stakes in the club.

Gers chairman King and fellow investors have contributed around £16m to the club in interest-free loans.

They are now able to swap a large chunk of that debt for shares, after a vote at Thursday's annual general meeting.

The board no longer needs to involve the rest of Rangers' shareholders when offering shares to investors.

King has promised to invest another £7m in the club over the next 18 months.

The chairman and his board had twice previously attempted to pass the so-called "Resolution 11" at their last two AGMs but were thwarted by a bloc that included Mike Ashley and the Easdale brothers, ex-chairman Sandy, and former director James.

However, King has now been able to pass the motion after Sports Direct tycoon Ashley sold off his nine per cent stake to Rangers fan group Club 1872 and businessman Julian Wolhardt earlier this year.

The resolution was backed by 78.3% of shareholders - a little more than the three-quarter margin required.

A statement on the club's website read: "The board is delighted to see such support from its shareholders. The success on Resolution 11 paves the way for a share issue."