Mighty Kingdom fends off ex-CEO's takeover attempt
Fewer than 10% of Conan Chop Chop studio shareholders voted for former boss' resolution to replace board
Mighty Kingdom shareholders today voted against a resolution brought by the studio's former CEO Shane Yeend to oust its current board of directors.
"With less than 10% of shareholders voting for resolutions proposed by shareholder Mr. Yeend aimed at replacing the Board, this [Extraordinary General Meeting] signifies a commitment for stability and trust in the future direction of the company," the studio said.
"In total, less than 34% of total issued shares were voted in favour of the resolutions proposed by Mr. Yeend, of which half of this total were from Mr. Yeend and his related companies."
Yeend is the founder and CEO of major Mighty Kingdom shareholder Gamestar Interactive. He also served as CEO of Mighty Kingdom for five months last year, from May through September.
As detailed by Kotaku Australia, the relationship between Yeend and the existing Mighty Kingdom board turned publicly hostile in the months after his departure, and culminated in Yeend making a formal shareholder proposal to replace the existing board of directors with a new slate of management including himself.
In the lead-up to today's vote, Mighty Kingdom circulated a letter signed by more than half of the employees in the company saying they would not feel comfortable staying at the studio if Yeend's resolutions were passed.
"I don't consider it a win," said current Mighty Kingdom chair David Butorac after the vote. "I consider it the strongest possible endorsement and mandate for the board, the company's strategy and its remarkable staff and management team. We are focused on leveraging our expertise to drive operational excellence, attract strategic investments, and unlock sustainable growth. I look forward to all shareholders now aligning behind the direction and strategy that this majority vote signifies.
"In the many conversations that Management and I have had with shareholders over the past month, there has been a consistent theme of these distractions have to stop and the company needs to get on with restoring shareholder value. This will be our primary focus as we rebuild Mighty Kingdom and work towards finalising arrangements for strategic investment."