Luckin Coffee previously fired its chief executive and chief operating officer over their alleged roles in fake sales.
Photo: wang zhao/Agence France-Presse/Getty ImagesChinese coffee chain Luckin Coffee Inc.’s co-founder Charles Lu will remain chairman—at least for now—after the board failed to get the necessary votes to oust him, the company said Thursday.
The company didn’t disclose the tally.
A vote of at least two-thirds of the other directors present and voting at the meeting was necessary to remove Mr. Lu as board director and chairman.
The attempt to oust Mr. Lu, the company’s controlling shareholder, came a day after Luckin Coffee said it would fire 12 workers who either played a role in or were aware of the alleged fabrication of $310 million in sales last year. In addition, Luckin Coffee said 15 more workers faced other disciplinary action and that it would end its business relationship with all third parties involved in the scheme.
Luckin Coffee, which has said it is cooperating with related investigations by Chinese and U.S. authorities, previously fired its chief executive and chief operating officer over their alleged roles in the fake sales. On Wednesday, it said the internal investigation into the matter was substantially complete.
An extraordinary general meeting is scheduled for July 5 and includes the possible removal of several directors, including Mr. Lu and Sean Shao, and the appointment of two independent directors that Mr. Lu nominated.
The board asked shareholders to vote against a proposal to remove Mr. Shao from the board, citing concern about potentially disrupting the internal investigation. Mr. Shao is the chairman of the special committee that oversees the investigation.
The majority of Luckin Coffee’s board had recommended Mr. Lu be removed, citing “documentary and other evidence” uncovered during the internal investigation and Mr. Lu’s “degree of cooperation,” the company said in a statement.
Mr. Lu hasn’t complied with requests by the special committee to interview him and gain access to his phone and laptop, people familiar with the company have said.
Mr. Lu, in a statement, had said that he didn’t “set out to deceive investors” and welcomed any investigation into the matter.
—Jing Yang contributed to this article.
Write to Maria Armental at maria.armental@wsj.com
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