Puzzle & Dragons publisher/developer GungHo Online is considering a shareholder request to oust CEO and president, Kazuki Morishita.
As reported by VGC, the developer initially received a 32-page report back in January from shareholder Strategic Capital, requesting the firm “up its game.”
According to this new report, shareholder Intertrust Trustees (Cayman) Ltd has now also requested an extraordinary general meeting to revisit GungHo’s requirement to secure votes of no confidence from two-thirds of its shareholders rather than the typical 50% of voters. It is also requesting a vote to dismiss Morishita.
Together, Strategic Capital and Intertrust Trustees account for around 8% of GungHo’s shareholder stock. The latter believes a CEO change is required due to sluggish studio performance, both in terms of output and share price, low expectations of Morishita’s management, and the belief the CEO is responsible for making GungHo a “one-hit wonder.” It also takes issues with Morishita’s compensation.
“The petitioners believe that, in order to improve the company’s corporate governance and enhance shareholder value, directors should be removable by an ordinary resolution at a shareholders’ meeting,” GungHo responded in a statement.
“Accordingly, they request the removal of Mr. Morishita from his position as director. They have therefore requested the convening of an extraordinary general meeting prior to the upcoming annual general meeting, at which proposals for the election of directors are scheduled to be presented.
“We will carefully review the content of the request and announce our response policy as soon as it will be determined.”
