GungHo Online, the company behind Puzzle & Dragons, is experiencing a backlash from its shareholders

GungHo Online, known for publishing and developing Puzzle & Dragons, is evaluating a request from its shareholders to remove CEO and president Kazuki Morishita from his roles.

According to a report by VGC, Strategic Capital, a shareholder, had earlier in January submitted a 32-page document urging the company to improve its performance.

A recent request from Intertrust Trustees (Cayman) Ltd, another shareholder, calls for a special general meeting. This meeting would reconsider GungHo's policy requiring two-thirds shareholder approval for votes of no confidence, instead of the usual majority, and also propose a vote to remove Morishita.

Together, Strategic Capital and Intertrust Trustees control roughly 8% of GungHo's shares. Intertrust claims a change in leadership is necessary due to declining company performance, concerns over Morishita's leadership, and dissatisfaction with his remuneration. They also believe that under his guidance, the firm has not expanded beyond being a "one-hit wonder."

GungHo has issued a statement indicating that the proposal from the shareholders emphasizes the necessity for directors to be dismissible through an ordinary resolution at shareholder meetings to boost corporate governance and shareholder value.

The statement further mentions that an extraordinary general meeting has been requested before the next annual meeting to discuss director elections. GungHo plans to thoroughly evaluate the shareholder request and will disclose its response strategy once finalized.