Falkirk Council and Falkirk Football Club (FFC) have approved proposals for the demerger of a joint venture company set up to manage the club's stadium.

Under plans agreed by both the club and the council, Falkirk Community Stadium Ltd (FCSL) will be broken up into three separate companies, with assets divided between the council and FFC. The council will take control of the commercial activities of the stadium, as well as responsibility for developing the 42-acre (17-hectare) site, excluding the stands.

Meanwhile, FFC will be responsible for all football-related matters, including the pitch, the floodlights and the development of the stadium's south and east stands. A development agreement between FCSL and Henry Boot Developments, which will see a new hotel and a restaurant built at the site, as well as four corner pods, will be taken on by the council.

FFC chair, Campbell Christie, said: "In the current economic climate, with the credit crunch and the problems in the property market, the FCSL approach is no longer viable to deliver our ambitions. "The division of assets between the club and the council allows each party to focus on their strengths and their own businesses."