Blues’ power struggle takes fresh twist as BIH board faces threat
THE power struggle for control of the board at Birmingham City FC parent, Birmingham International Holdings, has taken a fresh twist with former Blues chairman Carson Yeung thought to be behind a bid to get three senior directors ousted from their positions.
However, the BIH board has said it has concerns about the proposal and has asked the Hong Kong Stock Exchange to intervene in the matter.
Yeung is currently in jail serving a six-year sentence having been convicted of money laundering charges last year.
In a statement to the HKSE, BIH said the board had received a letter before Christmas purportedly from Yeung (named as the “Requisitionist”) requesting a general meeting to discuss the removal of the three directors.
The letter urged that Cheung Shing, BIH chairman and an executive director of the company be removed with immediate effect, together with vice chairman and executive director Ms Ma Shui Cheong and executive director Chen Liang.
The proposal also calls for them to be replaced by respectively, Wang Man Li, Li Wen Jun and Arjun Kumar Gurung.
The board said it had written to the requisitionist seeking clarification but had not received a response.
The statement from BIH continues: “The board is very concerned about the concerted efforts of the requisitionists, their actual relationship and reasons behind the requisitions, it has raised its concerns with the Stock Exchange and the Securities and Futures Commission, and the regulatory authorities are currently looking into the issues.
“The board is seeking legal advice as to the appropriate course of actions that it should take in relation thereto.
“In the meantime and in particular, pending the responses from the requisitionists and the outcome of the findings of, or any further directions from, the regulatory authorities, the board considers it inappropriate to convene the EGM at this stage.”
The board said it would update shareholders and potential investors on any further developments as and when appropriate.
“If, however, any of the requisitionists proceeds to convene the EGM despite the pending responses and outcome of the findings of, or any further directions from the regulatory authorities, the board will resist vigorously in order to protect the shareholders’ rights as a whole,” it added.
The board also confirmed that trading in BIH shares would remain suspended until further notice.
