Embattled Hong Kong businessman Peter Pannu on Friday resigned as director of Birmingham City Football Club as controversy continued over a series of online posts he made a week earlier. Pannu, right-hand man of former club boss and convicted money launderer Carson Yeung Ka-sing, sparked alarm by suggesting the club could run out of money as early as next month due to a £1.8 million (HK$21.8 million) tax bill. His meandering posts on supporters' website Often Partisan - which ran to more then 1,000 words - also suggested Yeung still influenced club decisions. Yeung is barred from any involvement in club affairs due to his conviction, although he still holds a significant stake in the club's holding company. The posts sparked concern among fans and investors and prompted the club to put out a statement categorically denying the bankruptcy claims. Days later, trading was halted in the shares of Birmingham International Holdings, the Hong Kong-listed parent company. Pannu did not respond to inquiries by the Sunday Morning Post . However, a terse, two-sentence statement posted on the team's website confirmed Pannu's departure. "The resignations have been accepted with immediate effect by the boards of Birmingham City PLC and Birmingham City Football Club," the statement read. The Blues Trust, a leading fans group, welcomed Pannu's exit. "His tenure was turbulent and difficult for Birmingham City supporters. Despite several calls by Blues Trust for clarity over certain issues and fan engagement from Mr Pannu during his time at the club, these were all ignored," said Emma-Louise Hodgson, a member of the trust's board. "This could only be interpreted as a disregard for and a lack of interest in the supporters of Birmingham City." A former Hong Kong police officer, Pannu remains one of the 11 directors of Birmingham International, according to a company memorandum. The parent company is to host its annual general meeting in Tuen Mun on December 23. One possible attendee at the meeting could be Yeung, who is serving a six-year sentence in Stanley Prison after his conviction in March for laundering HK$721 million. Yeung, a former hairdresser turned millionaire businessman, has a bail hearing on Tuesday pending an appeal against the money laundering conviction. Will Giles, a Hong Kong solicitor and co-author of Haircuts and League Cups: The rise and fall of Carson Yeung , said he fully expects Yeung to be granted bail due to legal developments since his conviction. According to Giles, a recent Court of Final Appeal ruling means judges or juries in money laundering trials must now consider whether the defendant believes the funds concerned represent the proceeds of crime. Previously, the measure was whether a notional normal member of society would hold that view. "It must be like a Christmas present for Carson," Giles said.