Pannu set to be dumped as CEO and MD of Blues’ parent
BIRMINGHAM City FC’s former acting chairman Peter Pannu has had his influence over the future of the club further eroded.
He resigned on Friday from the Championship side’s board of directors – and that of the club’s PLC. The resignations were accepted by the boards of Birmingham City PLC and Birmingham City Football Club.
Pannu now faces being dumped as CEO and managing director of the club’s holding company, Birmingham International Holdings.
Hong Kong-based BIH will stage its annual general meeting on December 23 and in a statement to the Hong Kong Stock Exchange it outlined its intentions.
It said: “The board of directors of Birmingham International Holdings would like to inform shareholders and potential investors of the company that the board (save and except Mr. Peter Pannu, Mr. Chan Shun Wah and Mr. Cheung Kwai Nang) is of the view that, it is inappropriate for Mr. Pannu to continue acting as the Chief Executive Officer and Managing Director of the company.
“The board has resolved to terminate the appointment of Mr. Peter Pannu as Managing Director and Chief Executive Officer of the company.”
Pannu has been nominated to retain his place on the BIH board but this will be solely in the capacity of executive director. He will not be a member of the audit, nomination or remuneration committees.
As such his influence on board affairs is likely to be significantly eroded.
Sources close to the club believe the board was angered by Pannu’s recent behaviour and for the picture it painted of the club’s finances.
Earlier this month, Pannu clashed with Blues supporters in an online rant which appeared to suggest the club could run out of money within weeks because of a possible £1.8m tax demand.
The rant prompted intervention by the Football League which has demanded the football club explain Pannu’s actions.
To distance itself from the situation the club issued a statement saying it was “shocked and disappointed” at the allegations.
“It would be inappropriate for the club to comment on specifics, however the club wishes to allay any fears that may now arise on the basis of the allegation there will be no funds beyond January/February 2015 – this is categorically refuted,” it said.
Neither the club nor BIH has made any comment on the sale of the club.
Earlier this month BIH suspended share trading on the HKSE after an apparent offer for the business.
Former Swindon Town chairman Jeremy Wray is believed to have made a formal offer to acquire the Championship club with promises to pump £25m a year into the business. He is thought to be partnered with former Newcastle United director Steve Hayward.
