MoviePass executive Carl Schramm has resigned from the board of directors at parent company Helios and Matheson, citing corporate management concerns.
The announcement comes as another blow to the struggling cinema subscription firm, after financial issues continue to force unfavourable changes to membership.
Earlier this week, MoviePass moved to replace its annual subscription option, with customers set to convert to a monthly subscription.
Members were given the option to receive a pro-rata refund if they wanted to cancel their annual subscriptions.
When it first launched its controversial subscription model, MoviePass grew to more than three million subscribers, allowing members to see one film a day for a flat monthly fee of $9.95.
However, following financial difficulties earlier this month, MoviePass announced that it would only allow cinema fans a choice of three films per month in a bid to stay afloat.
Schramm discussed his issues with Helios and Matheson Analytics’ corporate strategy in a letter.
“I have objected to the manner in which a number of business decisions have been presented to the Board of Directors by management, without sufficient time for the Board to examine complex documents, to review significant transactions, or to discuss how the proposed actions fit into the Company’s strategic plan,” Schramm says in a letter, according to USA Today.
His concerns have reportedly escalated over the last two months. Schramm added: “… management apparently has made a number of important corporate decisions and executed significant transactions either without Board knowledge or approval, or in Board meetings initiated with only a few hours of advance notice by email.”