West Brom shareholders ‘appalled’ and upset as Ken snubs questions

Ke, otherwise known as Ken, is sole director of WBA Group, of which the club is a subsidiary.

Shareholders for Albion, who represent a large majority of the club’s minority shareholders, issued Ken a 38-question dossier earlier in May, seeking to address and clarify details and areas of concern within the club accounts published in March, and specifically covering controversial loans under controlling shareholder Guochuan Lai.

Shareholders have told the Express & Star that the stance taken by Ken, who insists minority shareholders do not have the right to such information, is “ludicrous”. Ken’s view is strongly rebutted by S4A members.

Helpless supporters have been left close to tears as latest attempts to clarify concerns were turned down. There is continued fury the prospect of an AGM remains ignored.

Minority shareholders had hoped some of their requests for information would be granted, rather than a flat refusal to reply. One described the response as “absolutely appalling”.

A shareholder told the Express & Star of his upset that despite thorough questions been asked on behalf of all Albion fans, questions were unanswered. “These well-thought out questions were really submitted on behalf of all the club’s loyal supporters not just the 430 minority shareholders,” they said.

“We are devastated about the unacceptable use of the club’s precious cash resources under the control of Xu Ke, as sole director of WBA Group, who agreed the so called £4.95million loan to Wisdom Smart, and as nominee of the apparent controlling shareholder Guochuan Lai.”

They added of the controversial confidentiality issue: “Shareholders are perfectly entitled to ask questions particularly when such uncertainty arises about such a huge loan which was personal to our chairman’s overseas business and which has defaulted on repayment on three occasions and no interest has ever been paid.

“We now gather that confidentiality is also a prime reason for none of the 38 questions to be answered. In whose interests is this confidentiality based?

“One question asked for the omitted date of the approval of the accounts by both Xu Ke and the auditors to be supplied as it is material to the interpretation of the accounts, how can this be confidential?”

Borrowing includes a four-year £20m loan from MSD Holdings just before Christmas to cover running costs in the absence of parachute payments from this summer at an annual interest cost estimated around £2.8m.

The club are owed at least £10m by Lai, including the controversial £5m Wisdom Smart loan, of which three deadlines have been missed, and has now been impaired with West Bromwich Albion Holdings added as a guarantor.

There is further uproar among that fee relating to the interest-free loan of £187,000 paid to WBA Holdings, which wholly belongs to Lai, to cover unspecified legal fees.

A letter from S4A chairman Leigh 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.”