THE proposal to make JM Packaging the new owners of York City was passed by an overwhelming majority of 78 per cent at last night's Supporters' Trust special general meeting.

A total of 529 votes from the 674 cast were in favour of the motion, which will see the Trust relinquish their 85 per cent ownership of the football club.

The "No camp" amassed 145 supporters, while five ballot papers were spoiled and almost 50 per cent of the Trust's 1,281-strong membership failed to vote.

Based on people attending last night's meeting at the Barbican, the result was closer with 130 in favour and 70 against.

But the postal proxy vote ended 399-75 in favour of accepting the JM Packaging proposal, which will see an eventual total of £1million invested into the club by the Malton-based company who are owned by Minstermen managing director Jason McGill.

Concerns were expressed by pressure group the Friends of Bootham Crescent and other Trust members at last night's meeting about the money, estimated between £479,000 and £900,000, that JM Packaging will receive back, under the proposal, on the sale of KitKat Crescent when City are in a position to move to a new stadium.

Reservations were also ventured about the tax implications of JM Packaging's takeover, which will be concluded subject to legal agreements within the next three months.

But Trust chairman Steve Beck has signalled his intention in coming months to allay the fears of those people not entirely comfortable with the decision to hand over 75 per cent plus one share ownership of the club to JM Packaging.

He said: "I'm pleased the Trust membership has voted in favour of the proposal and we have got the situation resolved but I'm not ecstatic because I would rather we had not reached this position.

"The key now is to try to reunite the people who have had different views because that has divided the club and we cannot afford that because we are a very small club.

"We've got to try to reach the membership who were against the motion and we also need to improve our ability, as a Trust board, to communicate with the fans on the terrace.

"I think that might have been lost with the immense responsibility, as a small board of volunteers, that has come with being 85 per cent owners."

Beck, who is also a club director, added that he felt a huge relief that the Minstermen have avoided the serious implications that he believes might have arisen from a "No" vote.

He said: "We needed to get a quick decision in order to provide financial security for the club going forward.

"You only have to look at the situation down the road at Scarborough to see what happens if you don't get your financial situation right in any division and the Conference are very ruthless.

"You can start the season with a ten-point deduction and that would be a big mountain to climb."

About the Trust's future role as 25 per cent, less one share, shareholders, Beck added: "I almost see the Trust reverting back to what it was originally set up for securing professional football in York and ensuring the protections over the ground are kept in place.

"With two seats on the board we will still be influential and increasing fund-raising initiatives will still be important."