An SEC filing on Wednesday revealed that Ignace Lahoud and Man Jit Singh resigned from the WWE Board of Directors due to their disagreement with Vince McMahon’s return.
“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.”
The SEC filing also mentioned that WWE aims to have a Board “comprised of a majority of independent directors” by January 30th, in accordance with New York Stock Exchange requirements and rules.
Vince McMahon rejoined the WWE Board of Directors last Friday and was re-appointed Executive Chairman on Tuesday. Following his return, his daughter Stephanie resigned as Co-CEO, leaving Nick Khan as the sole CEO.
On Tuesday, WWE shareholder Scott Fellows filed a class action lawsuit against Vince McMahon in Delaware’s Chancery Court.
The lawsuit claims breach of fiduciary duty under section 141 of Delaware’s General Corporation Law. Fellows seeks to invalidate the bylaw changes McMahon implemented after his return, along with costs and other fees.
Fellows also alleges that McMahon used his 81% company voting control to oust three board members, replace them with his own selections, and enforce bylaw changes granting himself the final say on any sale or media rights agreements.
The suit contends that McMahon violated Delaware law by seizing control over major WWE corporate decisions and adding his chosen members to the Board.