I’ve started to use Sharegate.com to network with other shareowners around specific companies. The first company I’m working on through Sharegate is Reeds (REED). I think our company’s product line is strong but management and the board appear to be weak in distribution skills. After years of refining and growing their fine products, #REED still is not profitable.
Back in mid-July I asked if Reeds had a classified board or plurality requirements for director elections? Can shareowners call a special meeting or act by written consent? What supermajority requirements are in place re M&A or other actions? No response. Reeds is so small it is hard to get much information on from the usual sources, such as SharkRepellent.net or GMI, although both did have some useful information. I was able to find that two out of five of the directors at Reeds don’t hold any stock at all in our company. That’s not a good sign. If they don’t believe in our company enough to invest in it, why should we?
I hope those on Sharegate and readers of CorpGov.net will review the proposal and provide feedback. This proxy access proposal has a minimum threshold of 1% held for 1 year by at least 25 shareowners to elect up to 48% of the board. Since Reeds has 5 directors, if passed the draft proposal would allow up to 2 shareowners nominees on the proxy.