Gillingham have been placed under a transfer embargo - but they can still sign players.

The embargo relates to the late filing of accounts with Companies House and the terms of their monitored loan agreement.

It means the Gills can't pay transfer fees but they are still allowed to sign free agents and loanees.

The Companies House website confirms the club's accounts should have been filed by May 31.

Chairman Paul Scally says the accounts have been completed but auditors are yet to finish the process.

He cited Covid-related staffing issues and expects to resolve the situation in the next couple of weeks.

Gillingham have signed six players this summer - Olly Lee, Ben Reeves, Max Ehmer, David Tutonda, Danny Lloyd and Aaron Chapman - all on free transfers.

Under the terms of the embargo they are permitted a squad of 23 players "to ensure the integrity of the competitions remain and so that clubs are able to fulfil their fixtures".

Termed as "staffing up" on the EFL website, while under embargo, the Gills may only register players until the end of the season, while loans are limited to half a season.

They cannot pay loan fees or additional wages to a loanee on top of their normal salary - however, neither of those conditions are likely to affect Gillingham.

The Gills are one of eight clubs operating under a transfer embargo.

The others are Championship sides Hull, Derby and Reading, League 1 rivals Fleetwood, and Oldham, Scunthorpe and Swindon of League 2.

In June, EFL clubs approved an amendment to the regulations to allow the league to publish a list of clubs under embargo.

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