Boston Globe – South Korean online game developer Gravity Co. Ltd. said Tuesday its shareholders rejected a proposal from U.S. hedge funds to remove two senior executives from its board ofdirectors.
Ramius Capital Group and Moon Capital Management on Dec. 18 requested the removal of Chief Executive Il Young Ryu and Seung Taik Baik, the company’s chief operating officer.
A majority of shareholders rejected the proposal in a meeting Tuesday.
“We will continue our efforts toward building a more transparent and accountable governing structure as we drive the business forward,” Gravity said in a statement.
The hedge funds had cited “consistent ‘detrimental’ actions against shareholders by the executives and the board through various related-party transactions with companies that clearly have conflicts of interest with the company.”
The hedge funds also questioned the executives’ decision to acquire another gaming company, Emile Chronicle Online, without seeking an independent valuation.
