Alico's CEO Looks to Shake up Its Board of Directors
The CEO of Alico Inc. has made a move that could give him control of the company's board of directors.
Barry Genkin, an expert in shareholder activism with the law firm Blank Rome LLP in Philadelphia, said he suspects Alico's board is looking at removing Trafelet for cause in part because of his activism, "the goal of which appears to take control of the company."
If the shareholder group controls 56 percent of the stock, then they control the votes, so even if every other shareholder votes against the proposals, they would still be approved, as long as the written consent meets the requirements of the company's bylaws and Florida law, Genkin said.
He said he's not surprised to see the other board members taking the position that the consent action doesn't follow Alico's required procedures and doesn't comply with Florida law.
The shareholder actions could trigger a lawsuit, he said, if the two sides can't reach an agreement. Ultimately, a judge could be the one to decide whether the consent action will proceed.
"What's really curious about this one is that what seems to be happening is that the CEO basically became a turncoat," Genkin said. "He decided to form allegiances with groups outside the company and that's why I believe the company is looking to remove him for cause and there may be other reasons."
"Alico's CEO Looks to Shake up Its Board of Directors," by Laura Layden was published in Naples Daily News on December 8, 2018.