The founder of Amigo has quashed speculation that he could launch a competitor to take on the troubled high-interest lender if he fails to secure a third spell on its board.
James Benamor has demanded to be installed as chief executive as he seeks a comeback after resigning as a director for a second time in March.
Mr Benamor will call a shareholder vote on Thursday if his proposals are not met, but insisted he will not compete with the business which he set up 15 years ago should this gambit fail.
Former Amigo boss Glen Crawford is currently expected to be reinstalled as chief executive at the firm once he receives regulatory approval, after a 16-month absence due to health problems.
But Mr Benamor wants Mr Crawford to instead run only the firm’s subsidiary which is regulated by the Financial Conduct Authority (FCA).
Mr Benamor also demanded that interim chairman Roger Lovering be sacked. He wants chief financial officer Nayan Kisnadwala to be replaced by a “capable” successor within 30 days.
The move sparked speculation from analysts at Goodbody that Mr Benamor’s Richmond Group could launch a rival firm once its Amigo shareholding falls below 10pc, as it would then be free from a non-compete clause.
Richmond Group already has an international guarantor lending business.
Mr Benamor said: “Richmond Group has no plans to launch, fund or invest in any... regulated competitor to Amigo.”
Responding to Mr Benamor’s demands on Monday, Amigo said that Mr Crawford had told the board he is not prepared to work for the firm in any circumstances where the founder returns to a position of influence.
Amigo lends up to £10,000 to borrowers with low credit ratings provided a friend or relative agrees to step in if they fail to repay.
Its board has agreed that Mr Crawford can terminate his contract if Mr Benamor calls a shareholder meeting and succeeds in winning a seat, the company said.
Mr Crawford's return as chief executive was predicated on Mr Benamor’s declaration that he was selling down his entire 61pc shareholding, Amigo added.
Responding on Twitter, Mr Benamor said that the chances of Mr Crawford resigning if the proposals are voted through “are roughly 0pc”.
Mr Benamor has been selling his shares since he failed to oust the previous bosses at a vote in June, in which he agreed not to vote. The addition of new shareholders could strengthen his hand in future if they are sympathetic to his aims.
Amigo’s market value fell 30pc to £59m on Monday - less than 5pc of the company's £1.3bn valuation when it listed in 2018.
The lender faces raft of customer complaints that forced it to pencil in a £127m charge in last year’s accounts, a figure that is expected to rise this year. It is under investigation by the FCA.
Mr Benamor lashed out at City watchdogs as he launched his campaign to return for a third spell on Amigo’s board.
He accused the FCA and Financial Ombudsman Service of failing to ensure a “fair and stable rule of law” for high-interest lenders in the UK.
He said: “The UK regulator’s actions have supported fraud by consumers against lenders, and a campaign of looting led by claims management companies, many linked to the most unscrupulous vultures the industry has to offer.”
Mr Benamor’s attack on the regulators was in contrast to Amigo’s statement that the company must work constructively with the FCA and FOS to resolve customer disputes.