WINNIPEG (Reuters) – Activist investor West Face Capital has called for a special meeting of Maple Leaf Foods shareholders, saying it is concerned about how the company’s board of directors operates.
Investors expected the hedge fund to push for changes since it bought a 10 percent stake in Maple Leaf in August, and its move helped increase the company’s shares by four percent Dec. 3.
West Face, Maple Leaf’s second-biggest shareholder, called for the special meeting to allow shareholders to push for a new board with less influence from major investors, who include chief executive officer Michael McCain and his family. The current board is planning a $1 billion revamping of operations to improve earnings.
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West Face partner Thomas Dea said management and the board had rebuffed the fund when it raised concerns about board independence and corporate governance.
“We have concluded that the board needs to hear a strong message from shareholders that the independence and governance practices of Maple Leaf do not satisfy their expectations or today’s standards of good corporate governance,” Dea said in a statement.
