It was revealed in an SEC filing on Wednesday, the reason for Ignace Lahoud and Man Jit Singh resigning from the WWE Board of Director is they both disagreed with the return of Vince McMahon.
“While Messrs. Lahoud and Singh agreed with the Board’s decision to explore the Company’s strategic alternatives, they did not agree with Mr. McMahon’s return at this time.”
According to the SEC filing, WWE expects to have the Board “comprised of a majority of independent directors” by January 30th per the requirements and rules of the New York Stock Exchange.
Vince McMahon officially returned to the WWE Board of Directors last Friday and was re-appointed Executive Chairman this past Tuesday. Soon after, his McMahon’s daughter Stephanie resigned as Co-CEO., leaving Nick Khan as the sole CEO of the company.
A WWE shareholder Scott Fellows has filed a class action lawsuit Tuesday against the newly-reinstated Executive Chairman Vince McMahon. The suit was filed in Delaware’s Chancery Court.
Fellows is claiming breach of fiduciary duty in line with section 141 of Delaware’s current General Corporation Law. Fellows suit is looking for the invalidation of the bylaw changes made by McMahon after he returned to the company’s Board of Directors last Friday, in addition to costs and other fees.
Fellows is also accusing McMahon of using his 81% company voting control to remove three board members and replace them with his own hand-picked members and pushing through the aforementioned bylaw changes which includes giving himself (McMahon), the final say on any sale or media rights agreements.
The suit states that McMahon violated Delaware law by taking control over any major WWE corporate decision and “adding his cronies to the Board.”