Nine-in-a-row hero Ian Ferguson believes the return of the legendary Ibrox manager will encourage fans to invest in shares when the club is floated on the Aim stock exchange. Smith agreed to become a non-executive director on Sunday and will advise the new owners on football matters.
Ferguson declared: "Walter being involved in Rangers again will play a massive part in convincing fans to get behind the share floatation. Walter would never in a million years be a part of anything the slightest bit dodgy. He won't be involved with any get-rich-quick schemes for anyone else where, of the £20m raised, £5m goes into the club and £15m goes out the door."
Smith's return has been welcomed by Light Blues supporters who idolise the 64-year-old following his two trophy-laden stints as boss.
There have been misgivings expressed about the share plan, which chief executive Charles Green hopes will raise up to £20m, by many Rangers fans.
The turmoil Rangers went through this year under the ownership of Craig Whyte has led to understandable caution about the intentions of the Green consortium.
But Ferguson is convinced Smith's return will pay dividends in persuading fans to back the cash scheme.
He added: "I am sure fans who are thinking of investing will want to make 100 per cent sure any money they part with is going to go into the club.
"The club has to detail how it will be used. There is a lot of work to be done to drive the club forward."