By Davit Kirakosyan
JANA Partners LLC announced Wednesday its intention to take legal action against Zendesk Inc. (NYSE:ZEN) for the company’s failure to set a date for its 2022 annual meeting. Under Delaware General Corporation Law Section 211, shareholders have a right of action if a company fails to hold an annual meeting within 13 months of the prior year’s meeting. Zendesk 2021 annual meeting was held on May 18, 2021.
Furthermore, JANA Partners LLC also commented on today’s CNBC report, according to which a sale process is unlikely to result in a transaction, which was followed by the Board’s rejection of real interest in the company in February to instead pursue the ill-conceived acquisition of Momentive, which was subsequently shunned by more than 90% of Zendesk’s shareholders. Barry Rosenstein, the Managing Partner of JANA, said that Zendesk shareholders should be furious in case CNBC’s report is accurate.
Rosenstein also highlighted the fact that Zendesk’s stock price hit a new 52-week low today, which reflects shareholders’ lost confidence in the company.