Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

ISS and Glass, Lewis back IsZo directors for Nam Tai board

Stock MarketsApr 11, 2021 07:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Svea Herbst-Bayliss

BOSTON (Reuters) - Two proxy advisory firms said shareholders of Nam Tai Property should vote for several directors nominated by IsZo Capital to join the China-based real estate company's six-member board.

New York-based IsZo is Nam Tai's third-largest investor after Kaisa Group Holdings Ltd, which owns 24% and Peter Kellogg (NYSE:K) which owns 19%.

Institutional Shareholders Services (ISS) recommended shareholders elect three of IsZo's six nominees while Glass, Lewis and Co. recommended they elect two of IsZo's nominees.

ISS criticized a lack of independence at the board level saying that four of six incumbent directors breached their fiduciary duty in the context of an improper private placement with Kaisa Group Holdings Ltd.

A court in March concluded that the placement represented a breach of fiduciary duty by certain directors. On April 7, Nam Tai said it is appealing the judgment, a spokesman said.

"Removing three incumbent directors and adding three dissident nominees should be sufficient to improve independent oversight of the board," the report said.

ISS said shareholders might "reasonably" choose to remove all four directors who were deemed to have breached their fiduciary duty.

Glass, Lewis wrote IsZo "provided sufficient evidence to substantiate its claims regarding poor performance and corporate governance."

Shareholders will vote at a special meeting scheduled for April 26.

ISS recommends shareholders elect Michael Cricenti, Bo Hu, and Louis Leung and remove directors Aiping Lyu, Si Zong Wu and Wing Yan Lo. Glass, Lewis recommends for the election of Hu and Leung from IsZo's slate and for the removal of Wu and Lo.

Last year, IsZo, which owns roughly 13% of the nearly $455 million real estate company, nominated six directors. The firm accused Nam Tai's board of backing a questionable acquisition strategy and having no credible plan to boost the company's share price.

IsZo pushed last year for a special meeting and criticized the appointment of three Kaisa-affiliated executives to the roles of executive chairman, chief executive officer and chief financial officer.

In October, Nam Tai announced that it had raised $170 million through a private placement with Kaisa and a financial group based in Hong Kong.

ISS and Glass, Lewis back IsZo directors for Nam Tai board
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email