Report that McMahon No Longer Needs Shareholder Approval
Vince McMahon furthers his control of the WWE in what looks like his latest power grab. The details are somewhat murky. However, Vince has the authority to approve any WWE purchase or TV rights deal without shareholder approval. At least that’s the current belief.
Wrestletalk’s Liam Winnard is reporting:
WWE made a new SEC filing today (January 17, 2023), stating that, as of yesterday, Vince McMahon no longer needs stockholders’ approval for his actions.
H/T Wrestletalk
The exact details of this filing are being analyzed but Vince’s actions since his return suggest it’s just the latest of the WWE chairman doing things as he sees fit.
Wrestling Observer/Figure Four Online’s Josh Nason noted:
Wrestlenomics’ Brandon Thurston noted that one of the initial amendments McMahon made required shareholders to approve any company transaction or media rights deal. Since he is the controlling shareholder, he would have to approve any such deal. With the Tuesday change, that is no longer the case. As he is now Executive Chairman, he now has the decision power he gave back to himself with the bylaw change before being elected back to the position.
H/T Wrestling Observer/Figure Four Online
Although Vince has taken this action, it remains to be seen whether it will hold up in court upon any challenge.
A Challenge to Vince’s Authority
Vince’s latest move could be seen as more reasons for stockholders to file suit. Yahoo Sports! reports that Detroit’s Police and Fire Retirement System filed suit against Vince McMahon last Thursday:
The complaint argues that McMahon has breached fiduciary duties as controlling stockholder by trying to “impose his personal will on WWE and its [board] by purporting to adopt a package of invalid and inequitable bylaw amendments that would hamstring the Board from making critical business decisions.”
H/T Yahoo! Sports
According to the article, the lawsuit seeks “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.”
Will this lawsuit have any effect on Vince McMahon’s plans?
Vince McMahon Furthers Control of WWE
Analysis: Vince McMahon is likely going to continue doing what he wants until someone stops him. The most likely avenue is through a shareholder’s lawsuit. However, a lawsuit doesn’t mean the shareholders will prevail and Vince could continue doing things his way.
What’s next for Vince McMahon and the WWE? Let us know in the comments below.
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