Ah! i get it. So a managing director is a member of the board. If you wanted a managing director to become a CEO as the CEO cannot be a member of the board as he/she would be in effect reporting to themselves.
So my take is that in order for this bro to be appointed CEO he had to resign otherwise there there are a whole bunch of administrative meetings that must take place in order to "remove him".... basically they have created a quicker and cleaner transition. Reasons for this are many:
- he represented a shareholder group on the board but no longer does and you wanted to retain them.
- the board want him as CEO and so have just transitioned the position.
- a signigicant player wanted him gone, but the board really like him so have provided a cushy position
- He has elected this himself as wants to take over the day-to-day of the company.
I doubt its anything bad as they would be given him the CEO position as anything that would cost you a board seat would most definitely cost you a CEO position. So in short, its a mandatory admin release "nothing to read here"... my take only, consult a lawyer.
ARD Price at posting:
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