On November 11, 2011, Prime Minister Danny Philip resigned. His resignation came just before a motion of no confidence from Parliament over allegations of his misuse of Taiwanese funds.
Five days later, Gordon Darcy Lilo was elected prime minister, winning 29 out of 49 votes in Parliament. He defeated three other opponents in the election. Lilo previously served in Parliament and as the minister of finance and treasury. Sir Frank Kabui continued to serve as governor-general when Lilo took over as Prime Minister.