Billabong shares have surged after an American shareholder group called for a spill of the embattled surfwear company’s board.

The company on Monday morning said New York-based hedge fund Coastal Capital International had called for a general meeting of shareholders.

The news caused Billabong shares to surge by more than 22 per cent, or 9.5 cents, to 52 cents during morning trade.

At 1353 AEST the shares were up seven cents, or 16.5 per cent, at 49.5 cents.

Billabong told the market the board would review Coast Capital’s proposal, and communicate this to shareholders, but vowed the action would not delay a decision on refinancing proposals by rival US private equity consortiums.

“The board does not anticipate that this action by Coastal Capital International Ltd will cause any delay or deferral of the company’s process to complete the long-term financing,” Billabong said.

“These matters will continue to be progressed to ensure that the long-term financing of the company is finalised as soon as practical so it can focus on rebuilding the business.”

Coastal Capital, which bought a five per cent stake in Billabong last month, on Friday proposed that all current directors of the Gold Coast-based multinational be removed, except for founding shareholders Gordon Merchant and Colette Paull, whose families own 16 per cent of the company.

Billabong last month made a $US470 million ($A529.13 million) refinancing arrangement with US private equity group Altamont Capital Partners.

Launa Inman subsequently resigned as chief executive, with Altamont naming former Oakley boss Scott Olivet as her nominal replacement.

But during that same week, Billabong said it would consider a rival offer from US hedge funds Centerbridge and Oaktree.

Mr Olivet is remaining as a consultant to the board until a refinancing decision is made.

Billabong incurred an $860 million loss in 2012/13, which was triple the loss of the previous financial year.