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ARTICLE · 17 MARCH 2010

A 'Fit And Proper' Approach

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

Charles Russell Speechlys LLP

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Recent sporting headlines have been dominated by the attempts of sporting regulators to rid their sports of "bad apples" by exercising powers devolved under ‘fit and proper person’ rules.

United KingdomMedia, Telecoms, IT, Entertainment
Justin Reid
Justin Reid

Recent sporting headlines have been dominated by the attempts of sporting regulators to rid their sports of "bad apples" by exercising powers devolved under 'fit and proper person' rules. This has been seen most notably in the context of football and horseracing.

In relation to football, the relevant 'fit and proper person' test and the ruling body will depend on the tier of football. Both the Premier League and the Football League have introduced rules, while The FA has its own rules which apply to Conference clubs.

It was in the context of the FA's rules that English football saw its first instance of a club owner being required to reduce his shareholding as a result of failing a 'fit and proper person test'. Stephen Vaughan – the owner of Chester City – fell foul of the rules following an investigation into alleged VAT fraud and a decision taken by the Insolvency Service to disqualify Vaughan as a company director for 11 years.

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