THE RAC is attempting to overcome legal obstacles in order to complete the £450 million sale of its rescue service to the American-owned Cendant Corporation. A High Court hearing in London on Monday, will consider whether the company has the right to drop two clauses from its memorandum.
Clause 4 would prevent the RAC's would-be owner, Cendant, from taking any profit. It would also stop directors of the RAC receiving any windfall. It also prevents anyone receiving income from the rescue service other than the six million RAC rescue service members. Clause 5 prevents any changes to this clause.
A court hearing will decide whether or not the two clauses can be dropped and it will also decide whether to approve an additional clause that would allow 'expedient' donations.
Clause 4 would prevent the RAC's would-be owner, Cendant, from taking any profit. It would also stop directors of the RAC receiving any windfall. It also prevents anyone receiving income from the rescue service other than the six million RAC rescue service members. Clause 5 prevents any changes to this clause.
A court hearing will decide whether or not the two clauses can be dropped and it will also decide whether to approve an additional clause that would allow 'expedient' donations.
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