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Electronics Production | November 22, 2006

Solectron announce termination of poison pill

Solectron Corporation announced that its Board of Directors has voted to terminate the company's stockholder rights plan, or "poison pill."
In addition, the Board established a new corporate governance policy providing that any future poison pill will require stockholder approval prior to adoption. The new policy does, however, give the Board limited discretion to adopt a new stockholder rights plan without first seeking stockholder approval if a majority of the independent directors believes the implementation of a rights plan is necessary for the proper exercise of the Board's fiduciary responsibilities. In such a circumstance, the rights plan would need ratification by the company's stockholders within twelve months of adoption, or it would automatically expire.

"Our decision to terminate the stockholder rights plan and establish this new policy reflects the Board's continuing commitment to corporate governance best practices," said Michael Cannon, Solectron's President and Chief Executive Officer. "The Board believes that our new policy balances our stockholders' concerns and the protection of our stockholders' best interests."

The Board's actions will accelerate the expiration date of the company's current stockholder rights plan to November 27, 2006. It was due to expire in July 2011.
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