Peace appears to have been restored between Westmoreland Coal and its shareholder, Venor Capital Management, which owns 6.2% of the company, after a disagreement emerged over the composition of the Westmoreland board.
In February, Venor said it would nominate two candidates – Eugene Davis and Robert Flexon – for election to the board at the company’s 2016 annual general meeting (AGM).
Under an agreement with Westmoreland, Venor will now withdraw its nomination notice in exchange for the nomination of Flexon on Westmoreland’s slate of director nominations for election at the AGM.
In addition, Westmoreland’s board will also interview Davis and at least one other candidate put forward by Venor to add to the board before its first scheduled meeting in August. As a result, the board will expand from eight to nine members.
“We value input from our investors as we seek to further strengthen our board’s capital markets expertise,” said Westmoreland’s CEO, Kevin Paprzycki. “This agreement also demonstrates our board’s commitment to corporate governance and transparent communication with our shareholders.”
Westmoreland Coal claims to be the oldest independent coal company in the US. Last year, it reported losses of US$203 million but has seen its share price rise from a low of US$3.93 in January to US$7.19 at close of trading on 28 March.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/29032016/westmoreland-coal-agrees-to-expand-board-2016-477/