THE Union of Fans has accused the Rangers board of misleading shareholders - and urged them to accept the offer of financial help from Dave King.

The union - an amalgamation of six supporters' groups - reacted "with utter dismay" to the Ibrox club's announcement yesterday that they plan to raise £4million through a new share issue.

The fans blame the directors for putting the Glasgow institution once again on the brink of administration by ignoring multi-millionaire supporter King.

South Africa-based King has offered to put £30 million into his boyhood heroes to help them back to the forefront of Scottish football.

A Union of Fans statement read: "There are several claims made by the board which we feel are bordering on the misleading of shareholders.

"The board's inaction and incompetence over the past nine months has led the club once again into an extremely precarious financial position which could easily have been avoided.

"Graham Wallace and the other board members have known for at least nine months that significant levels of investment were required not only to see out the current season but also to invest properly in the club.

"They have also been, or should have been, well aware that this level of investment would not be raised from current shareholders and that only those with a genuine love for the club were willing to put such sums in.

"They have continually refused to take the necessary steps to allow those outside the existing shareholder base to invest the funds required.

"Indeed they have continued to pursue every option to keep those people out.

"They now hang the threat of a second administration over the heads of both fans and shareholders when they remain fully aware that funding can be brought in from outside.

"For the avoidance of doubt, if this board would finally start to do their job properly, there can be absolutely no threat of administration.

"A £30 million funding package has been available for at least the past seven months and remains available."

The Union of Fans has also dismissed claims by Rangers that the share-offering cash will be used to rebuild the Ibrox club and warned about the pitfalls of Mike Ashley increasing his stake, saying it could fall foul of SFA or Uefa rules and they did not want Ashley involved.

The statement said: "The board are attempting to dress this stop-gap measure up as being for the benefit of the club. The stark reality is not a single penny of this money … will be used to improve the club in terms of infrastructure or investment.

"It will be used to repay loans, to pay fees and to pay bills."

It added: "The claim that this money will be used to re-build and re-establish Rangers is false. It will do nothing to effect the required change.

"It will only serve to keep an incompetent board in place for a few more months.