Luckin Coffee asked to reverse boardroom changes after co-founder’s ouster, as China prepares to wield big stick for accounting fraud

Luckin Coffee, the coffee chain dubbed as China’s Starbucks, has been asked by some shareholders to reverse some of its boardroom changes in July following the ouster of its co-founder and chairman, as Chinese regulators prepare to clamp down on accounting fraud.

Hong Kong-based Centurium Capital is seeking to reinstate Sean Shao as a director and remove Jie Yang and Ying Zhen as independent directors, the company said in US exchange filings on Monday. These would undo the changes that took place at a shareholders’ meeting on July 5.

The two independent directors, however, have resigned from the board with immediate effect, Luckin said in a separate filing. The duo were both reported by local Chinese media to be the nominees Haode Investment, the family trust of co-founder Charles Lu Zhengyao. Lu was separately removed as chairman at a board meeting on July 12.

Luckin has called for an

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Wirecard Exposes Big 4 Accounting Lapses Endure Post-Enron

(Bloomberg) — Two decades of financial disasters from Enron Inc.’s collapse in 2001 to Wirecard AG’s meltdown have left the Big Four accounting firms facing a major cultural problem that regulators may struggle to resolve.

The 1.9 billion euros ($2.1 billion) missing from Wirecard’s balance sheet brought the chief executive officer’s arrest, the German payments firm’s insolvency filing and a lot of finger-pointing. Some have blamed German regulator BaFin for its oversight failures. Wirecard’s auditor, Ernst & Young, called it an “elaborate” fraud that even a very rigorous probe may not have discovered.

But EY is also on the hot seat. It was added to a class-action style lawsuit against Wirecard on Tuesday, and stands accused of failing in its most fundamental duty. It’s a systemic problem facing not just EY, but also the other members of the Big Four: KPMG, Deloitte and PriceWaterhouseCoopers, according to Atul Shah, an accounting

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