The CEO submitted a letter of resignation to the board of directors or, alternatively, made his continued tenure subject to conditions. After receiving the letter, the board of directors decided to dismiss him.
The court ruled that the dismissals were lawful. The board of directors has the authority, by law and in accordance with the bylaws, to decide on the dismissal of a CEO. Here, the investors who appointed the directors sought to retain their power and veto the appointment and dismissal of the CEO, when the CEO did not retain a similar right. Also, whether the dismissals were made following the letter or not, since the meeting was held lawfully, the dismissals were also made lawfully.
