![]() ![]() Venture capital firm Benchmark Capital stresses a team approach, and the team has shared in some spectacular results. Private Company Incorporated: 1995 Employees: 35 NAIC: 523910 Venture Capital Companies Rabbani and the board cling on much longer, they will be remembered for all the wrong reasons.Suite 200, 2480 Sand Hill Road Menlo Park, California 94025 U.S.A. It belongs to all shareholders, including those who have seen Enzo’s shares sink to around $3, down from a recent peak above $10 a few years ago. ![]() But the company doesn’t belong to him alone. Rabbani has much to be proud of, having founded the company 45 years ago and dedicating his career to it. It has also written a letter urging the company to accept Dr. On Friday, Roumell Asset Management, LLC filed a 13D reflecting its 5.8% stake in the company. Walters responded to requests for comment from CorpGov.Įnzo should not expect shareholders to tolerate its behavior. Those directors include Mary Tagliaferri and Ian Walters, both of whom only joined the board in November. “Anyone who has seen this will take this behavior into account.” “There will be a question raised as to their commitment to investors,” Professor Elson said. It is hard to imagine them being supported by shareholders at any other company where they might seek board seats. Then there is the reputation of the directors behind the coup. But in 2019, at the behest of a hedge fund consortium, the company removed several directors including Ms. Like ServiceSource, Bed Bath & Beyond defied shareholders and kept her onboard. Bed Bath & Beyond, for instance, faced a similar situation in 2018 when Victoria Morrison submitted her resignation after failing to win majority support. Both men were removed the following year. One recent example is ServiceSource International, which saw two directors voted out in 2019 but who didn’t leave: Bruce Dunlevie, a General Partner of Benchmark Capital and Thomas Mendoza, Vice Chairman of NetApp. First, other boards that have tried such a stunt have quickly been disgraced. There are several practical reasons why the board should reconsider its position. ![]() “This is regretfully straightforward – the board works for the shareholders and needs to abide by them.” Woolard, Jr Chair in Corporate Governance at the University of Delaware. “They should accept his resignation,” said Charles Elson, Professor of Finance, Edgar S. ![]() Enzo didn’t respond to a request for comment from CorpGov.Ĭorporate governance experts say common sense and fiduciary duty should prevail. By all indications, the board intends to ignore the will of shareholders and essentially stage a coup. And yet, he still holds his seat because the board of directors refuses to accept it. Rabbani, who has been with the company since it was founded, did what he had to do: Submit a letter of resignation. failed to get majority support – garnering just 44% of shares voted (a fifth of the total share count) at this year’s annual meeting.ĭr. Shareholders told the company they’d had enough earlier this month, when Chairman Elazar Rabbani, Ph.D. The latest unfortunate example is Enzo Biochem, Inc., a company founded in the 1970s that has frustrated investors with a poor operational and share-price performance over the last several years. It didn’t work in Washington, but some companies continue to believe that ignoring the outcome of a vote might be acceptable on Wall Street. ![]()
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