Amazing what one can find buried in financial filings at the SEC website. This is from a stock in liquidation:
Kwaku O. Kushindana, having a mailing address of…….Baton Rouge, Louisiana……., owner of 10 shares of EDCI common stock, has notified EDCI that he intends to present the following proposal at the Annual Meeting. As required by SEC rules, the text of the proposal and supporting statement are included below exactly as submitted by the stockholder. EDCI is not responsible for the contents of the proposal or the supporting statement.
“Hereby, that Kwaku O. Kushindana of Louisiana be hired as an Independent Consultant (based from Louisiana) to insure the rights of disaffected concerns (i.e., small shareholders, small firms doing business with EDCI, women & minority owned firms, gay & lesbian entities, artists under the purview of Entertainment Distributions Company, Inc, small retail stores, etc).
Further, that named person receives a three year contract during the winding down period of EDCI which would include a salary, plus expenses to insure the fairness of this process to all disaffected concerns.”
(Disclosure: I am long this issue. Cavet emptor)
The above is an example shareholder exercising his right to petition the ownership with a proposal. In this instance it is of the completely self-serving variety. As such it represents fodder for big business shills like the folks over at the Competitive Enterprise Institute which is a front for Bermudian reinsurers and other business interests.
Along those lines and since a shareholder has the right to petition the ownership there is an entire class of investors known as activists shareholders who endeavor to change bad corporate governance from the inside out. And that brings us to the opposite, or forced change from the outside in, taking the form of shareholder derivative lawsuits. On Continue reading “Slicked and Slabbed, the Barbarians are at the gates: Slabbed peeks inside the world of shareholder derivative lawsuits as we take a closer look at Transocean and the disaster in the Gulf”