Intriguing approach - which I suspect some Burnley shareholders will be following closely
https://www.expressandstar.com/sport/fo ... tor-xu-ke/
Albion shareholders to launch legal action on WBA Group and director Xu Ke
Albion shareholders say they have been left with no choice but to take "legal and regulatory action" on WBA Group and its director Xu Ke.
By Lewis Cox
Shareholders for Albion (S4A) set Group sole director Ke (Ken) a final deadline of Tuesday, 4pm, to satisfy "matters of extreme concern" in both the Group and club financial matters, overseen by absent controlling shareholder Guochuan Lai.
S4A chiefs previously revealed they have explored options into the matter and have now confirmed, via a media statement, they will press ahead with legal and regulatory actions, though these remain undisclosed due to sensitive and legal reasons.
The statement reveals the group, who represent most of the club's minority shareholders, will call a general meeting for shareholders as they engage in their next steps after "shareholders and part-owners are being prevented from scrutinising accounts of Group and club. Xu Ke has failed to credibly explain and defend his actions."
It also claims that Ken "misled shareholders" on the record on three occasions relating to assurances money had not left the club. It later emerged last summer in the delayed accounts to June 2021 that controlling shareholder Lai had taken a £5million loan from Albion to aid one of his other business interests, Wisdom Smart Corporation Ltd.
The group have conveyed their "significant concern" on last week's news that chief executive Ron Gourlay, with whom they had a strong relationship, has tendered his resignation. It adds doubt that Albion could attract a replacement CEO "of the required experience and capability."
"All supporters of West Bromwich Albion can be assured that we will do all that we can to protect the future of our great club.
"We must point out that Xu Ke has also misled shareholders on the record on three occasions previously when confirming that money had not left club, when we now discover it had.
"Once at a General Meeting dated 29 July 2021 and twice in agreed updates to be sent to our members, further to discussions with him."
Shareholders for Albion have also accused the EFL and Premier League for failing to intervene and swiftly investigate any potential wrongdoings at The Hawthorns.
The group say they are "very disappointed that the EFL has not intervened to protect the club." They add: "it (EFL) has either chosen not to intervene where it should have done so or does not have the powers to do so. Whichever scenario is correct, it reinforces the need for a football regulator to come into existence as soon as possible."
The statement, dated June 6, says it is "difficult to understand how this opaque ownership model was approved by the Premier League in the first place." It notes how Premier League bosses took 22 months to investigate a referral lodged in November 2020 relating to a potential change of ownership.
The shareholders added their gratitude and support to Action for Albion, the supporter pressure group rallying to raise awareness of Albion's plight under the stewardship of China-based Lai. Their work includes a parliamentary audience, dialogue with the club and a peaceful march protest attended by thousands outside The Hawthorns.
S4A's statement read: “Shareholders for Albion have been left with no choice but to take all legal and regulatory action necessary at this time to protect the future of our football club and prevent further misuse of the football club's money.
"All supporters of West Bromwich Albion can be assured that we will do all that we can to protect the future of our great club," the statement read.
"Our work combined with the excellent work of Action for Albion means that together we are maximising efforts and effect to protect our club. We ask that everyone supports both organisations in doing this. We are all Albion, first and foremost."
It added: "For legal and strategic reasons, we cannot provide a commentary at this stage on all steps which will be taken.
"We can, however, confirm that one of these steps will be to call a general meeting of the shareholders of Group, in accordance with sections 303 and 304 of the Companies Act 2006."
S4A also encouraged any minority shareholders not already represented by the group keen to join and play a part in protecting the club to register interest at
membership@s4a.org
When approached by the Express & Star, West Bromwich Albion Group Limited declined the opportunity to comment.