Mighty Kingdom AGM shakeup sees two directors exit
Mighty Kingdom’s leadership sees another shakeup this week, with one board member resigning and another failing re-election according to ASX updates.
Mighty Kingdom independent director and committee chairman David Butorac was removed during the company’s annual general meeting (AGM) on Wednesday. The shakeup follows the resignation of non-executive director Ian Hogg and the departure of CEO David Yin earlier this week.
Hogg’s resignation was submitted in an ASX update on November 22, and came into effect at the end of the AGM.
Details of Butorac’s failure to be re-elected were announced via the ASX on Wednesday afternoon.
The AGM took place against the backdrop of Mighty Kingdom’s voluntary trading suspension, as the game studio struggles to secure critical capital-raising deals to ensure its financial survival.
Leadership turnover adds to Mighty Kingdom’s governance woes
According to the ASX announcement, these changes appear to leave Mighty Kingdom with only two remaining board members: non-executive directors Chris Whiteman and Mark Aubrey.
In an enquiry to ASIC by SmartCompany, the commission pointed to its minimum officeholders page. This states that publicly listed companies must maintain a minimum of three directors under the Corporations Act 2001.
“As David Butorac has not been re-elected by shareholders to continue with the board, it will fall to the other Board Members to nominate and elect a replacement as Mighty Kingdom must have a minimum of three people on its board per its constitution,” The Mighty Kingdom board said to SmartCompany.
“David is likely to continue until such time, and step down in due course as per the resolution.”
The leadership churn also extends beyond the board. Mighty Kingdom has had three CEOs in the past two years, starting with founder Philip Mayes, who stepped down in January 2023 after 12 years in the role following disappointing financial results.
Mayes was succeeded by Shane Yeend, who left after only four months due to governance disputes. Interim CEO Simon Rabbitt held the role until David Yin’s appointment in March 2024.
Yin resigned as CEO earlier this month after eight months in the role, citing personal reasons.
When contacted by SmartCompany, the Mighty Kingdom board said in an emailed statement that “the leadership team, supported by the Board of Directors, is managing the day-to-day operations of Mighty Kingdom”.
“This group comprises experienced and highly capable leaders who have been instrumental in steering the company through this period of change.”
SmartCompany understands that questions about Mighty Kingdom’s financial position went unanswered during Wednesday’s AGM.
The company’s last quarterly update revealed the company has $891,000 in the bank as of September 30, 2024. This was down from $3.36 million on July 1, 2024.
Since entering a voluntary trading suspension on November 6, Mighty Kingdom has struggled to finalise capital-raising initiatives.
In an ASX update last week, the company acknowledged these transactions “may not proceed in their original form”.
A history of instability and challenges
Mighty Kingdom has faced persistent financial and operational issues since its IPO in 2021. Its share price has plummeted, from $0.28 at the time of listing to $0.045 today, and it has grappled with boardroom power struggles, shareholder disputes, and several failed game launches.
The company’s instability has been underscored by governance clashes, most notably involving former chair Michelle Guthrie, who resigned after accusations of failing to manage financial losses effectively.
Guthrie, in turn, alleged Yeend’s investment company, Gamestar Studios, had breached financial commitments by withholding $2 million from a share purchase agreement.
Despite these challenges, Mighty Kingdom’s board this week reiterated its commitment to achieving profitability by FY25.
“The company’s FY25 profitability goals remain a priority. While adjustments may be made to accommodate the current transition, the company’s focus on achieving profitability is unwavering,” the board told SmartCompany earlier this week.
Mighty Kingdom’s path forward remains fraught with uncertainty. Its voluntary trading suspension is set to expire on Friday, leaving investors awaiting updates on the company’s financial position, capital-raising progress, and efforts to stabilise its governance.
This story has been updated to include additional commentary from Mighty Kingdom regarding the AGM re-election results.
The author owns a small amount of shares in Mighty Kingdom.
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
Comments