Dissident Shareholder Wants To Stop Sirius XM Reverse Split
November 17, 2008 at 7:40 AM (PT)
The man who filed a shareholder suit against SIRIUS XM RADIO has served a set of demands on the company in letters sent to management. MICHAEL HARTLEIB, founder of SAVESIRIUS (SaveSirius.org), is demanding that the company's Board of Directors postpone the pending reverse stock split and issuance of additional stock, and is asking that all stock compensation plans and other bonuses be suspended immediately and revised as "performance-based compensation."
"Given the NASDAQ's reprieve of delisting securities below a dollar, there is sufficient time for the Board to convene an emergency meeting to consider other options, such as but not limited to, self-funding by shareholders," said HARTLEIB.
"If the board continues with the scheduled vote, we will believe that to be a violation of their fiduciary duties and will have no choice but to seek injunctive relief. The Board has also been notified that the proxy being distributed to SIRIUS XM shareholders is deficient as there is no mention of pending litigation in Federal District Court charging management with racketeering, fraud and breach of fiduciary duties; or the appeal before the D.C. Circuit seeking review and remand of the FCC's merger decision in part due to the failure to hold management responsible for violation of the interoperability mandate and allowing such management to continue in office to the detriment of shareholders and satellite radio consumers."