Magal Security Systems Ltd. (Nasdaq: MAGS; TASE: MAGS) chairman Jacob Perry and the company's directors have won a victory. They defeated an attempt by some shareholders to oust him and the directors.
At today's annual general shareholders meeting, shareholders passed all the items on the agenda, including renewing the terms of the directors and compensation for Perry.
The situation at Magal, a manufacturer of perimeter intrusion detection systems, closed circuit TV with intelligent video analysis and video motion detection systems, and security information management systems, has been deteriorating in recent years. The company has twice restated its financial reports, after it failed to receive income that it had already recognized.
Earlier this month, Magal's US shareholders notified the company that they wanted to convene an extraordinary shareholders meeting in order to oust the company's directors, including Perry and former controlling shareholder Yaakov Even-Ezra. The US shareholders wanted to replace five directors, some of whom are former executives in the company.
The shareholders' activism failed to persuade Magal's other shareholders, who preferred to keep things as they are.
Despite the demand by the US shareholders to postpone the previously scheduled annual meeting, Magal held it as scheduled today. The vote in favor of reelecting the current directors passed by an 80% majority. A similar majority passed the resolution concerning Perry's compensation, with just 14.6% of shareholders voting against.
Perry is also chairman of Mizrahi Tefahot Bank (TASE:MZTF). He is employed by Magal in a 50-60% part-time position for which he earns a monthly salary of NIS 50,000 and an annual bonus of 5% of the company's pretax profit, up to $500,000 a year.
Magal's share price fell 4.5% on the TASE today to NIS 11.12, but rose 2.1% at the opening on Nasdaq to $2.90.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2010
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