Chief executive of troubled software company Clarity Commerce Solutions (CCS:AIM) Graham York will stand down within the next three months following pressure from a group of rebel shareholders. While the rebels’ attempt to eject the entire board was defeated at an EGM last week, it was decided ahead of the meeting that York and other executive Peter Walker would go anyway.

Speaking after the EGM, Clarity non-exec Colin Chandler said: ‘We note the comments made by shareholders during this process and they will be addressed as we take the company forward.’ The rebels had blamed poor leadership for the company’s dismal share price performance and criticised corporate governance.

Shares in Clarity bottomed out at 50p in March prior to April’s profit warning, although news on April 16 that a group rebels were calling for an EGM prompted a 50% appreciation and the stock shot up to 74p within two weeks. Clarity shares have since slipped back, although at 66.5p it appears the market is interpreting the board reshuffle as positive.

A new chief executive is currently being sought, after which a finance director will be found to fill Walker’s position as business development director. A further non-exec has also been promised.

The rebels, with the support of former chairman Bob Morton, had claimed to have backing of holders possessing more than 50% shares – sufficient to get their EGM resolutions passed – but say they were diluted down to 43% just a week before the EGM when the board announced a new acquisition, paid for by the issue of new shares.

After floating on Aim in July 2000, £17 million Clarity hit a high of 133p that September before beginning a steady tread down to the all-time closing low of 50p on 1 March 2007. Current chairman Timothy Bittleston joined Clarity in November 2006 and he and Chandler make up the two non-execs currently on the board.