NY Post: Unrest At Napster
September 9, 2008 at 5:35 AM (PT)
A dissident shareholder group's bid to muscle its way onto the board of struggling digital music service NAPSTER is getting a thumbs-down from a pair of leading independent proxy advisers, reports TODAY's NEW YORK POST.
NAPSTER yesterday released select excerpts of findings from PROXY GOVERNANCE AND GLASS LEWIS in support of its argument that the opposition's proposed slate for the board isn't qualified because the nominees have no previous history of serving as directors of a public company.
NAPSTER is seeking re-election for its own slate of three directors, who the company says have over 34 years of combined experience serving as board members.
Disgruntled individual investors PERRY ROD, THOMAS SAILORS and KAVAN SINGH, who collectively hold slightly more than a 1% stake in the company, are seeking slots on the board, complaining of NAPSTER's direction under CEO CHRIS GOROG. They argue that the company has failed to take advantage of the growing business opportunities in digital music, losing ground to rivals like APPLE's iTUNES and REALNETWORK's RHAPSODY.
NAPSTER's annual meeting is scheduled for SEPTEMBER 18th.