In a landmark day for the Lions that ended two months of in-fighting, previous chairman Angus Johnson resigned, along with challenger Paul Williams and fellow director Linda Nash.
Springfield Land Corporation deputy Bob Sharpless has been rushed in as the new chairman in a board that also comprises Matthews, Mick Power, Cameron Milner and Peter McGregor.
Matthews' fellow 'Fresh Start' ticket members Ross Thornton and Dr Allan Smith also withdraw from the board race.
Matthews' appointment sees him return to the club for the first time since finishing his 10-year, three premiership coaching stint in 2008.
In a unanimous decision, the AFL Hall of Famer was voted in as an expertise director, allowing him to bypass the constitutional loophole that previously prevented life members from being voted to the board.
The Lions released a statement late on Wednesday night, confirming there was now no need for an Extraordinary General Meeting, originally slated for November 13.
Wednesday's board meeting eventually resolved the differences of the warring factions, after the AFL first attempted mediation in the week prior to the Grand Final.
The agreement confirms funding arrangements from the AFL for the Lions, believed to be worth nearly $2 million.
Although there will now be no extraordinary general meeting, Lions members still have an opportunity to vote on the change to the rights of life members in the constitution and on the Lions’ guernsey at December’s annual general meeting.
Twitter: @AFL_mikewhiting
