At an extraordinary general meeting in Zurich on Monday, shareholders elected four additional board members, all nominated by the minority shareholder group.
The vote gives the von Finck family, which owns a 31 per cent stake in Von Roll, five out of a total of nine seats on the board compared with the current one seat out of five.
Shareholders also voted in favour of von Finck's proposal for a capital hike between SFr7 million ($5.81 million) and SFr323 million, which analysts say the German group wants in order to push through a growth strategy based on acquisitions.
Von Roll has a current market value of $1.2 billion. The core business of what was once a giant in the iron and steel industry is insulation products it manufactures for the electrical industry. It also makes composite parts and materials for industrial applications.
The firm, founded in the early 19th century, is only a shadow of its former self. On the verge of bankruptcy in 2003, Von Roll has slowly recovered but its turnover of SFr532 million in 2006 was only a quarter of its 1990 revenues.
Nonetheless, the 2006 figures were 43 per cent higher than the previous year, proof of Von Roll's turnaround and an argument in favour of its strategy focussing on its core business.
Following the vote, all of the current board members with the exception of the lone von Finck representative announced they would step down. The CEO, Walter Vogel, also resigned.
The board led by chairman Oskar Ronner had urged shareholders to reject von Finck's proposals, calling them an attempt at a "covert takeover of the company".
It failed to convince shareholders that its more conservative growth strategy was a better one. The board argued that it could deliver double-digit growth rates, strict risk control management and above-average profit growth with its own funds.
The von Finck family launched its coup attempt in May. A family spokesman said it wants to re-establish the company as a broad-based industrial concern of worldwide renown.
The von Finck family is led by Baron August von Finck junior. In 1990, the elderly industrialist sold the Munich private bank Merck Finck & Co which he had taken over from his father, as well as his interests in leading German insurance companies and breweries.
He then began to focus his investments in Switzerland, buying substantial stakes in the restaurant and hotel chain, Mövenpick, as well as firms including Von Roll, Alusuisse-Lonza, Oerlikon and the inspection, verification, testing and certification company, SGS.
He added the castle of Weinfelden in northeastern Switzerland to his list of Swiss acquisitions and has resided there since 1999.
According to the United States magazine Forbes, the von Finck family has a net worth of SFr10 billion.