The shareholders assembly at Magal Security Systems yesterday approved the reelection of Jacob Perry as chairman of the board, by a landslide.
However, a group of shareholders that had sought to replace five directors on the board, including Perry, did not vote.
The assembly approved the reappointments of Nathan Kirsh, Jacob Even-Ezra, Zeev Livne, Barry Stiefel and Jacob Nuss as directors. The group of dissatisfied shareholders had sought the departure of all of them, with the exception of Kirsh.
The unhappy shareholders had requested the convention of an extraordinary general meeting of shareholders and the postponement of the annual general shareholders meeting, in order to give shareholders time to review information on potential board candidates. The Magal board rejected the request to postpone the regular annual meeting but did agree to hold a special assembly, as it must by law. It hasn't set a date for that assembly, however.
The disgruntled shareholders, including representatives of the U.S. investment funds Clough Capital Partners, Prescott Group Capital Management and Diker Management, argued that business at Magal has been declining for years and called for the replacement of the chairman and four other directors.
Among the issues on which the shareholders voted yesterday are new employment terms for Perry. He will get a yearly bonus amounting to 5% of Magal's net profit, but no more than half a million dollars.
Perry will also receive the right to use a high-grade company car and cellphone, a subscription to a daily newspaper and reimbursement of costs up to NIS 1,000 a month.
For the first quarter of 2010, Magal reported revenues of $9.8 million and net loss of $2.4 million.