West Bromwich Albion chairman Jeremy Peace was today braced for a potential High Court legal battle over controversial plans to shake up the rules on share ownership at the club.

Peace is under attack from a minority of shareholders unhappy with his plan to consolidate shares in Albion, which it is claimed could wipe out hundreds of small shareholders, while extending the chairman’s control of the club to more than 65 per cent.

The proposals mean that 10 shares will effectively become one, and at the current share price of £80, anyone who owns one share will need to spend £720 to acquire a further nine shares to ensure they retain their stake.

Under the scheme fans wishing to tender existing shares or acquire new shares will have until November 21 before control passes back to Peace, allowing him to buy any outstanding shares. The plans will be voted on at the club’s annual general meeting at The Hawthorns tomorrow and are guaranteed to be passed because of the backing of Peace, who owns a majority shareholding of 55 per cent.

But six rebel shareholders, fronted by Birmingham consultant David Billings, have written to Albion’s board in advance, raising questions and even threatening a High Court injunction. 

Peace, whose 55 per cent stake in the club ensures he can push through a vote on the proposals at the potentially stormy AGM, is in no mood to back down.

“I’m definitely not backing off,” he said today.

“I’m seeing this through to the end. I’m 100 per cent committed to the club ending up with a shareholders base that makes sense.

“For too long, the tail has been wagging the dog at this club. I think the club has been going nowhere for the bulk of the last 20 years because we have had these factions who have tried to control the club.

“They have managed to secure power, swing one way and then the other, and I have had enough of it. I have had enough of them.”

But  Billing, spokesman for the rebel group, has threatened to lead a bid to serve an injunction and effectively freeze the proposals if satisfactory answers are not provided to their concerns tomorrow.

“We feel the action is prejudicial against small shareholders and are unhappy about how Mr Peace acquired shares in the first place,” said Billing today.

“No-one disputes that he is doing a fine job running the company. But this is a step too far – it is avarice and an abuse of power.”

Peace wants to mop up the “long tail” of minor shareholders by consolidating shares, meaning that 10 shares effectively become one under the new structure.  This means that, at the current share price of £80, anyone who owns one share will need to spend £720 to add the nine new shares required to retain a stake.

Any fans wishing to tender existing shares or acquire new one will have until November 21st becord control goes back to Peace.