Shareholders of TriNorth Capital Inc. Monday voted 70 per cent to reject a bid to unseat its current board of directors, including former Bank of Canada governor John Crow.
Lawrence Asset Management Inc. has been managing TriNorth's portfolio of emerging companies since 2007. The TriNorth directors include Mr. Crow, who is its chairman and also on the advisory board of Lawrence Asset Management, and Ravi Sood, a hedge fund manager and president of the Toronto-based investment firm.
Dissident shareholder Tony Busseri, who has been upset because TriNorth's stock lost 90 per cent of its value in less than a year, put forth a slate of five directors that he argued could "do a better job and create wealth."
But the dissident group only managed to win 35-million votes versus 82-million for the management slate. "Shareholders have spoken clearly and loudly in support of the team that is best positioned to maximize shareholder value in their company," Mr. Crow said.
In the war of words between the two rival groups in recent weeks, Mr. Busseri suggested there has been "questionable related-party transactions, extremely poor disclosure and a number of actions and current proposals that appear designed to benefit the board."
But TriNorth said a special committee set up to review the allegations concluded that Mr. Busseri "has made inaccurate and irresponsible allegations that were unfounded, tactical and designed to inflame the proxy contest."
With a big win under its belt, the board of TriNorth Capital has its work cut out to boost the firm's moribund stock.
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