GungHo Online, the publisher and developer of Puzzle & Dragons, encounters a revolt from its shareholders

GungHo Online, the company behind Puzzle & Dragons, is weighing a proposal from shareholders to remove CEO and president Kazuki Morishita.

According to a report by VGC, the company was approached by Strategic Capital in January with a 32-page request to enhance its operations.

In a recent development, shareholder Intertrust Trustees (Cayman) Ltd has called for an extraordinary general meeting to alter GungHo's policy of needing a two-thirds majority for shareholder no-confidence votes instead of a simple majority. They have also petitioned for Morishita's removal.

Jointly, Strategic Capital and Intertrust Trustees hold approximately 8% of GungHo's shares. Intertrust Trustees insists on leadership changes, citing lackluster performance in both production and stock value, low confidence in Morishita's leadership, and the view that Morishita is turning the company into a "one-hit wonder." Concerns also include Morishita's remuneration.

GungHo stated, “The petitioners believe that improving corporate governance and enhancing shareholder value requires directors to be removable by an ordinary vote at a shareholders' meeting.”

The statement continues, “They have requested the removal of Mr. Morishita as a director and the convening of an extraordinary general meeting before the forthcoming annual general meeting, where director elections are to be discussed." GungHo confirmed it will “carefully review the details and announce a policy response once determined.”