Carson Yeung can stay on at Blues

Carson Yeung can remain in control at Birmingham - even if found guilty of five charges of laundering money amounting to £59million.

Yeung has been released on bail of £558,000 until the next hearing in his native Hong Kong, which is scheduled for August 11.

In addition, Yeung has been ordered to surrender his travel documents and report regularly to police.

The shares of City's parent company, Birmingham International Holdings, have been suspended.

If the charges against him are proven, Yeung would have to stand down as a director of the club under the "'fit and proper persons test 'which is part of Football League regulations.

But he would be able to stay at the helm as the majority shareholder, with a 26 per cent stake in Birmingham.

A Football League spokesman said: "The Football League are monitoring the situation. We can't comment further than that."

The alleged offences took place between 2001 and 2007 – two years before Yeung took control at St Andrew's.

Acting chairman Peter Pannu insists Blues are in a sound financial position, after flying to Hong Kong yesterday for talks with Yeung.

Pannu is adamant that there is no connection between the charges and the club.

He said: "The charges relate to the 2001-2007 period. That is two years before Carson invested in this club so there is no connection there.

"The finances are OK."