Luckin Coffee chairman ousted by shareholders: report

Luckin Coffee brewed controversy after faking sales

(Reuters) - Luckin Coffee Inc Chairman Charles Zhengyao Lu has been ousted by shareholders from the embattled coffee chain, just days after a proposal to remove him failed to get board approval, Bloomberg News reported on Sunday, citing Chinese web portal 163.com.

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Three other board directors including Sean Shao were also removed at an extraordinary shareholders meeting in Beijing on Sunday, the report said.

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Ying Zeng and Jie Yang will be added as independent board directors, the report added.

Luckin Coffee declined to comment.

People wearing protective masks gather outside a Luckin Coffee Inc. outlet in Shanghai, China, on April 3, 2020. (Photographer: Qilai Shen/Bloomberg via Getty Images)

Luckin stated just days ago that a proposal to remove Lu as chairman of the embattled coffee chain’s board did not get the number of necessary votes from directors to pass.

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The China-based coffee chain had earlier in the week wound up an internal probe into fake annual sales of about $300 million, following which several of Luckin's directors proposed the ousting of Lu.

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Lu, who is the controlling shareholder of Luckin, is also the founder of auto-rental firm CAR Inc and Chinese ride-hailing firm Ucar Inc.

During the investigation, Luckin sacked its chief executive and chief operating officers, who had previously held top positions at Lu’s other firms.

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