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Komfie Manalo, Opalesque Asia: Activist hedge fund Glenview Capital Management is seeking to amend the bylaws of Tenet Healthcare Corporation to allow all shareholders to take action by written consent without a meeting, including for the removal and election of directors.
The proposal, which is expected to be voted on Tenet's annual meeting expected to be held in in May this year, is contained in an open letter sent to shareholders. Glenview currently owns 17.8% of Tenet Healthcare.
"We believe Action by Written Consent is necessary and appropriate when a company exhibits long-term underperformance operationally, as well as financially, so that shareholders may both encourage and optimistically trust company-led improvements, while realistically verifying the urgency and veracity of such progress, "Larry Robbins CEO of Glenview Capital stated.
He added that a chronically unhealthy company is likely to return to health quicker and with more certainty if its owners are allowed more frequent Board oversight, and this is effectively accomplished through the ability to take Action by Written Consent.
Supporting the democratic process of Action by Written Consent is the simple act of putting in this access now so it will be available later should owners require it for timely intervention, he explained. Robbins added that any action suggested to be reviewed by shareholders under this format would have a separate vote, which would be open to all shareholders, w...................... To view our full article Click here
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