Court details how CEO’s lack of cooperation and boardroom conflict led to rare for-cause dismissal

A British Columbia court has dismissed a former CEO’s wrongful dismissal, conspiracy, and defamation claims, finding the board acted with just cause after months of concern over executive performance and priorities.

Steven Eric Vestergaard, former president and CEO of Destiny Media Technologies and its subsidiaries, was removed by board vote in June 2017.

He responded with a lawsuit alleging wrongful dismissal, civil conspiracy, and defamation, claiming board members conspire0d to remove him and damage his reputation.

The court’s decision, released October 24, 2025, details a breakdown in trust, missed responsibilities, and the board’s decision to act in the interests of the company.

Boardroom tensions and missed duties

Vestergaard began his employment in 1991 when he founded Destiny Software, later acquired by Destiny Media. By 2017, Destiny’s primary business, the PlayMPE platform, was experiencing declining revenue, and a new product, Clipstream, was not yet generating returns.

Board members Hyonmyong Cho and S. Jay Graber requested business plans and strategic direction from Vestergaard, but he did not provide the requested documents.

The court stated, “It was Mr. Vestergaard’s duty and responsibility as president and CEO to provide the board with information regarding the business. Mr. Vestergaard’s failure to provide business plans was a failure to perform an evidently...

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