Vince McMahon was officially reinstated into the WWE Board of Directors and appointed as Executive Chairman after his daughter Stephanie McMahon stepped down from her official duties. Vince’s return took place to usher in the sale of his global company. Despite his return being completely opposed by the original board, Vince McMahon used his power as majority shareholder and removed three members of the board to revoke their decision and appoint his handpicked executives in their place.
It is being reported by Sportico that Detroit’s Police and Fire Retirement System are seeking a declaration that could block Vince McMahon from regaining control of the WWE Board of Directors and even prevent him from pursuing the potential sale of WWE.
Detroit’s Police and Fire Retirement System sued WWE executive chairman Vince McMahon last Thursday, seeking a declaration that would effectively block the 77-year-old billionaire from regaining control of WWE’s board of directors and prevent him from expediting a sale. The retirement system requests that its complaint, which was filed in Delaware’s Court of Chancery, be recognized as a class action on behalf of other WWE stockholders. The complaint could slow a potential sale of WWE, which has an enterprise value of $8.6 billion according to Sportico’s estimates.
Sportico
This latest lawsuit directed at Vince McMahon argues that he had breached duties as a controlling shareholder by trying to impose his will on the entire company and its board by subjecting them to invalid and inequitable bylaw amendments. McMahon’s act directly keeps company control with him and prevents the Board from making key business decisions.
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