The family of former director Gilbert Kinch - which holds a 10.1% stake - has called for an extraordinary general meeting of shareholders next month, according to a statement to the stock exchange by Leicester City PLC.

The company said the family were seeking to replace Walker, Greg Clarke, John Elsom, Martin George, Bill Shooter and Brigid Simmonds with Gilbert Kinch, Denis Cassidy and Freddie Fletcher.

Cassidy is a former non-executive director of Newcastle United and Fletcher was Newcastle's executive chairman until his resignation in May 2000.

The proposal to be put to shareholders was signed by Gilbert Kinch, Janet Kinch, Wayne Kinch and Leicestershire Sporting Ltd, a company set up by Gilbert Kinch, Leicester City said.

PLC chairman Walker said in a statement the board recommends shareholders to vote against the resolutions.

Walker said: "Following the Extraordinary General Meeting on 22 December 1999, we believed that with a strong and unified board we had put behind us the problems of the past.

"However, Gilbert Kinch, one of the main protagonists in the events leading up to the 1999 EGM, has recently acquired with his family an interest of 10.1% of the company's issued shares capital thereby enabling them to requisition an EGM at the company's cost.

"The board does not understand how uncertainty created by the EGM could assist the football management, team and staff."

The meeting will be held at the Walkers Stadium on 11 July.

Leicester were relegated from the Premiership this season.