Xu Ke’s refusal to answer West Brom questions draws shareholder rage
WBA Group director Xu Ke has further enraged Albion shareholders by refusing to answer questions over the Baggies’ financial fears.
Earlier this month, Shareholders for Albion (S4A) issued WBA Group’s sole director Ke, known as Ken, with two documents featuring 38 questions as concerns mount over the club’s future beyond the summer.
Albion finances were described as a ‘material uncertainty’ in accounts published in March. S4A, via chairman Leigh Kent, submitted a thorough and lengthy document questioning several aspects of recent events under absent controlling shareholder Guochuan Lai, including the controversial unreturned £5million Wisdom Smart loan and the £20m loan from MSD Holdings at around 14 per cent.
The Express & Star understands Ken maintained that 430 minority shareholders, of which S4A represent a significant portion, are not entitled to information sought and that confidentially prevented such a reply.
In a statement to members, that stance was called “unfortunate and unacceptable”. It was also reiterated than Ken refuses the option of an annual general meeting, where concerns could be raised and explained.
S4A were keen to stress that they sought answers from Hawthorns-based Ken not solely for 430 smaller shareholders of the club, but its many tens if not hundreds of supporters of supporters worldwide.
Albion are owed in excess of £10m, including the historic loan made by former owner Jeremy Peace which including interest is now more than £5m and is currently under investigation. It was estimated Albion’s annual interest cost stands at around £720,000, which was labelled “ridiculous and disgraceful”.
Last month’s accounts also stated the club must sell players in order for head coach Carlos Corberan to operate in the transfer window.
A letter from Kent to members, seen by the Express & Star, read: “I am very sorry to have to report that Ken has refused to answer any of the questions you have raised on the accounts of the company in which you hold shares.
“This effectively removes your ability to fully consider the acceptability or otherwise of the accounts of the company which you part-own.
“This is clearly both unacceptable and unfortunate, given the position the football club is now in and the events which have unfolded off the pitch in recent times. It will, of course, add to the level of concern widely shared by supporters and shareholders of Albion.”
