Shareholders of Mighty Kingdom voted against a resolution proposed by the studio’s former CEO, Shane Yeend, aimed at removing the current board of directors.
The studio reported that the Extraordinary General Meeting (EGM) reflected a commitment to stability and trust in the company’s future direction, with less than 10% of shareholders supporting Mr. Yeend’s resolutions to replace the Board.
A statement from the studio highlighted that, in total, less than 34% of total issued shares favored Mr. Yeend’s proposed resolutions, and half of this support came from Mr. Yeend and his related companies.
Shane Yeend, who is the founder and CEO of major Mighty Kingdom shareholder Gamestar Interactive, had a brief stint as the CEO of Mighty Kingdom for five months last year, from May to September. Following his departure, the relationship between Yeend and the existing Mighty Kingdom board became publicly hostile, leading to Yeend formally proposing to replace the current board with a new slate of management, including himself.
Leading up to the vote, Mighty Kingdom circulated a letter signed by over half of its employees, expressing discomfort with staying at the studio if Yeend’s resolutions were approved.
After the vote, David Butorac, the current chair of Mighty Kingdom, stated, “I don’t consider it a win; I consider it the strongest possible endorsement and mandate for the board, the company’s strategy, and its remarkable staff and management team.” He emphasized the focus on leveraging expertise to drive operational excellence, attract strategic investments, and unlock sustainable growth. Butorac looks forward to all shareholders aligning behind the majority vote’s direction and strategy.
In response to shareholder concerns, Butorac noted, “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 the Mighty Kingdom and work towards finalizing arrangements for strategic investment.”
