Vocus Communications boss Geoff Horth has survived a plot to remove him from the helm of Australia's fourth biggest telecommunications firm.
The bid to oust Mr Horth, less than a month after chief financial officer Rick Correll resigned, was instigated by non-executive director Tony Grist, whose confidential proposal to the board was supported by executive director James Spenceley.
The pair proposed that Mr Horth should step down in early 2017, and the board's leadership be formally reviewed over the course of the year.
But the rest of the Vocus board did not agree with their plan, and subsequently accepted Mr Grist's resignation and requested Mr Spenceley also quit.
Vocus chairman David Spence said the board unanimously supports Mr Horth and his executive team.
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""While it is disappointing to see the departing directors leave the board, these resignations are in the best interests of shareholders so we can now move forward with a fully cohesive board and executive team," Mr Spence said.
Mr Horth was appointed CEO in February following the company's $3.75 billion merger with M2 Group, where he had been CEO since 2011.
The merged company is made up of the low-cost telcos run by M2, including dodo and iPrimus, and Vocus's data centres and cable networks.
Vocus ranks fourth in size behind industry heavyweights Telstra, Optus and TPG Telecom.
In June, Vocus bought Nextgen Networks, plus two development projects, for up to $861 million, to bolster its telecommunications infrastructure and earnings. Vocus funded the Nextgen deal deal via a $652 million capital raising, plus existing debt.
Mr Spence said at the time of the M2 merger, shareholders were presented with a leadership team and strategy they fully supported, which was only recently reinforced with the Nextgen acquisition and raisings.
IG market strategist Evan Lucas said news of the bid to oust Mr Horth has rattled investors, particularly given the company is still completing its merger.
"It doesn't bode well when you have infighting at the top because it (merger intergration) does require a lot of strategy, and a lot of will and and a lot of management's time and effort, " Mr Lucas said.
Vocus shares were down 23 cents, or 4.1 per cent, at $5.40 in a lower Australian share market at 1200 AEDT.
Vocus said the merger with M2 is proceeding as planned and its $40 million synergy target is on track to be delivered by the end of 2017/18.
The acquisition of Nextgen is expected to be completed this month, and integration planning is on track.
