Williams Cos. confirmed Friday that six of its 13 board members resigned amid a dispute over who should lead the company in the wake of a failed merger with Energy Transfer Equity LP.

Half the company's board, not including Alan Armstrong, the chief executive, felt the company should choose a new CEO as it prepares to set a new course. They argued that Mr. Armstrong, who has been at the helm since 2011, was ill-suited to lead an independent Williams.

The directors, not including Mr. Armstrong, were split evenly, with six supporting him and six opposing him. The split left Mr. Armstrong in place.

"The Board of Directors has thoroughly evaluated the company's leadership structure and determined that Alan Armstrong is the right chief executive officer for Williams as the company works to continue enhancing stockholder value," Williams said in a news release Friday.

Williams said it would "evaluate the appropriate size and composition of the board going forward."

Shares of Williams fell 4.4% to $20.68 in midday trading in New York.

Kathleen Cooper, a current director and member of the audit committee member has been appointed chairman of the board, replacing Frank MacInnis, who resigned his post at chairman.

The resignations were first reported Thursday by The Wall Street Journal.

Williams is contemplating its future after having been embroiled for months in a troubled merger with Energy Transfer. Last week, a Delaware judge ruled that Energy Transfer could walk away from its proposed takeover of Williams, which was once valued at $33 billion, and Energy Transfer notified Williams this week that it wouldn't close the deal.

Williams is appealing the court's decision.

The six directors who fought against keeping Mr. Armstrong in place included Keith Meister and Eric Mandelblatt, activist investors who joined the board following a public campaign in 2014.

Board Chairman Frank MacInnis resigned for personal reasons, though he was among those who disagreed with the decision to keep Mr. Armstrong as CEO, the company said.

The other board members resigning include Laura Sugg, a former executive at ConocoPhillips; Ralph Izzo, CEO of utility giant Public Service Enterprise Group Inc.; and Steven Nance, president of a privately held oil and gas company.

Liz Hoffman and David Benoit contributed to this article.

Write to Alison Sider at alison.sider@wsj.com

(END) Dow Jones Newswires

July 01, 2016 12:25 ET (16:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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