More than 50 students stormed into the Hetherington Research Club, which folded last February amid claims that thousands of pounds had been embezzled from the accounts.
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The decision to occupy the club “indefinitely” was taken after university workers arrived on Monday to start renovating it into offices.
The students claimed the closure was part of wider cuts to education budgets and said they would not leave until Glasgow University agreed to fund the reopening of the club. They see it as a vital social space where academics can exchange ideas.
A University spokeswoman said: “As long as the protest remains peaceful and does not disrupt the normal business of the university and other students, campus security will not intervene.”