Three Shareholders Wage Stage Proxy Mutiny At Napster
June 27, 2008 at 1:45 PM (PT)
Three NAPSTER shareholders are asking to be elected to the board because they want changes in the digital music company’s strategy, reports the L.A. BUSINESS JOURNAL. PERRY ROD, THOMAS SAILORS and KAVAN SINGH, who hold 1.7% of the company stock assert that NAPSTER's hierarchy has not been aggressive enough in battling Internet piracy and its chief rival, APPLE..
After their initial application to NAPSTER's board for nomination was rejected on June 13th, the three decided to set up an independent proxy according to a regulatory filing with the U.S. SECURITIES AND EXCHANGE COMMISSION. Among their demands: separate the roles of chairman and chief executive; require a majority vote for the election of directors; and reject what they call "a 'just wait it out' mentality" in dealing with iTUNES and P2P piracy.
NAPSTER declined to comment.