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14. SPORTING SANCTIONS
14.1 If an Insolvency Event shall occur in relation to any Club that Club shall be deducted 10 points. The deduction shall be made forthwith on the happening of the first Insolvency Event.
14.2 Where the Club takes or suffers an Insolvency Event:-
14.2.1 at any time during the Playing Season, the points deduction shall apply immediately;
14.2.2 outside the Playing Season, the points deduction shall apply in respect of the following Season with the effect that such that the Club starts that Season on minus 10 points.
14.3 For the avoidance of doubt, where a Club is subject to more than one Insolvency Event (for example Administration followed by a Company Voluntary Arrangement), the Club shall be deducted only one set of 10 points, such deduction to apply with effect from the first Insolvency Event.
14.4 The Competition shall serve the Club with written notice of the points deduction (the ‘Notice’).
14.5 A Club may only appeal against an automatic deduction of points on the ground that the insolvency proceedings arose solely as a result of a Force Majeure event (the ‘Appeal’). For the purposes of this Rule 14, a ‘Force Majeure’ event shall be an event that, having regard to all of the circumstances, is reasonably considered to have been unforeseeable and unavoidable.
14.6 Any Appeal must be in writing and be received by the Competition at its registered office no later than 7 days after the Competition serves the Notice. The Appeal must contain a statement setting out the grounds of appeal and provide copies of any documentation upon which the Club intends to rely in support of the Appeal.
14.7 The Club must also lodge with the Competition, at the same time as the Appeal, a deposit fee in respect of the costs of the Appeal.
14.8 Upon receipt of the Appeal the Competition Secretary shall refer the matter to an SSAP by delivering to the Chartered Institute of Arbitrators (or such other body as the Board may from time to time determine) five copies of the appeal documents together with a request for the appointment of Arbitrators as set out in 14.9 hereof.
14.9 The SSAP shall consist of three Arbitrators, one of whom must be a barrister (or solicitor) of at least 5 years call who will act as Chairman of the SSAP, each to be appointed by the Chartered Institute of Arbitrators (or such other body as the Board may from time to time determine) as provided above.
14.10 The Competition shall, immediately upon receipt of the Appeal, instruct a firm of independent accountants to carry out a review of the Club’s activities for the purposes of preparing an independent report into the circumstances surrounding and leading up to the entering into insolvency proceedings. The Club shall meet the costs of preparation of that report in any event. The report shall be provided to the Club, the SSAP and the Competition. The SSAP shall take into account the contents of that report when determining whether the insolvency proceedings arose solely as a result of a Force Majeure event.
14.11 Both the Club and the Competition shall be entitled to make representations to the SSAP. The SSAP shall use all reasonable endeavours to hear any appeal within 21 days of the lodgement of the Appeal.
14.12 The SSAP shall have the power to:-
14.12.1 confirm the deduction of ten points; or
14.12.2 set aside the deduction of ten points and substitute a deduction of such lower number of points as it shall deem appropriate; or
14.12.3 order that there shall be no sanction at all.
14.13 The decision of the SSAP shall be final and binding. Any costs incurred by any party in appeal proceedings brought before the SSAP shall be met by the Club in any event and shall be considered as a sum due to the Company.
14.14 Any sanctions imposed pursuant to these provisions shall not be taken into account in respect of any other sanctions, penalties or fines that may be imposed by the Competition in respect of any breaches of its rules and Regulations or Articles of Association by the Club.
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