Viacom's Dauman, Dooley Submit 'Reservation Of Rights' Letters In Battle Over Removal
July 18, 2016 at 4:16 PM (PT)
An SEC Form 8-K filed by VIACOM says that Executive Chairman/President/CEO PHILIPPE DAUMAN and Senior EVP/COO THOMAS E. DOOLEY have filed "reservation of rights" letters through their attorneys to the company.
The letters, responding to the attempt by the rest of VIACOM's board, led by SHARI REDSTONE, to remove DAUMAN and four other directors, assert that DAUMAN and DOOLEY "are highly engaged in overseeing VIACOM’s operations and are committed to pursuing and executing VIACOM’s strategic plan for the duration of their respective employment agreements." The letters note DAUMAN and DOOLEY's rights under their contracts to resign in response to events that constitute “Good Reason” but add that they do not believe that such events have occurred; nevertheless, the letters say that DAUMAN and DOOLEY, in order to preserve their rights, are exercising the right to resign for “Good Reason,” effective 31 days after the entry of an unappealable judicial order establishing the validity of the purported removals (no such order is in effect now).