Seven resignations, two sackings and two suspensions on board of troubled Birmingham International; In January, Birmingham announced that HK$38 million was suspected to have been misappropriated by an unnamed former employee and Hong Kong police were investigating the matter

http://www.scmp.com/print/business/companies/article/1734042/seven-resignations-two-sackings-and-two-suspensions-board

Seven resignations, two sackings and two suspensions on board of troubled Birmingham International

Tuesday, 10 March, 2015, 9:20am

Toh Han Shihhanshih.toh@scmp.com

carson_david_wong

Carson Yeung was jailed for six years in March last year.

Seven directors of Birmingham International Holdings, including the chairman and chief executive, resigned on Monday, two directors were sacked and two directors were suspended, the Hong Kong-listed firm announced on Tuesday. The massive shake-up came a day after it was reported that imprisoned money launderer Carson Yeung Ka-sing had called an extraordinary general meeting of Birmingham International, which owns English soccer team Birmingham City. The receivers are conducting an investigation into the affairs of the companyBirmingham International

Yeung resigned as executive director of Birmingham International before he was sentenced to six years’ jail in March last year for laundering HK$721 million. He retains a significant stake in the company and has used his position as a shareholder to unilaterally call the meeting, which he could influence from his cell through proxy votes.

“The receivers are conducting an investigation into the affairs of the company,” Birmingham International said.

Cheung Shing resigned as the company’s chairman, while Ma Shui-cheong resigned as vice-chairman, chief executive and managing director. Chen Liang and Panagiotis Pavlakis resigned as executive directors. Ma was appointed chief executive and managing director on January 27, while Pavlakis was appointed executive director on January 7.

Li Han Guo and Liu Enxue resigned as independent non-executive directors after being appointed to the posts on January 7. Gao Shi Ku also resigned as independent non-executive director. Cheung Kwai-nang was suspended as executive director, while Carson Wong Ka-chun was suspended as independent non-executive director. Peter Pannu and Chan Shun-wah were dismissed as executive directors.

In the past few months, the troubled company has seen its key leaders fired and rehired amid factional infighting. Pannu, Yeung’s right-hand man, was dismissed as Birmingham International chief executive in December amid a furore over postings made under Pannu’s name on a blog. At Birmingham International’s annual general meeting in January, shareholders re-elected Pannu as a director of the company.

Executives of accounting firm EY, who are also Birmingham International’s receivers, assumed key positions on the firm’s board on Monday. Stephen Liu Yiu-keung was appointed Birmingham International’s chairman and executive director, David Yen Ching-wai was appointed executive director and chief executive, and Koo Chi-sum was appointed executive director.

In January, Birmingham announced that HK$38 million was suspected to have been misappropriated by an unnamed former employee and Hong Kong police were investigating the matter.

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