Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (11842)	7/10/2003 10:05:49 PM
From: scion	Respond to of 19428

SEC May Give Investors More Nominating Power Agency to Recommend Shareholders Be Given More Board-Election Rights By DEBORAH SOLOMON Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- The Securities and Exchange Commission staff plans to recommend that the agency move to give shareholders more power in nominating and electing corporate directors, according to people familiar with the matter. In a report to be delivered to the SEC next week, the staff plans to recommend that companies be required to lift some of the obstacles that prevent shareholders from nominating and electing directors. While details still are being hammered out, the report is likely to suggest that, in limited circumstances, companies should have to place a shareholder-selected board nominee on a company's official proxy material. Under current SEC rules, shareholders elect directors and they also can nominate candidates, but they can't include a nominee's name in the official proxy material, which lists the company's candidates. The SEC has been considering revising the rules because of concern that shareholders face barriers in nominating and electing directors. Options under consideration include allowing shareholder nominees on the company ballot when a certain percentage of shareholders support a candidate or when a "majority of shareholders" express serious concern about the board's makeup. Although it isn't clear what the SEC's final rules will look like, people familiar with the matter said there is a desire within the commission to open the process to allow for greater corporate democracy. "Something measured has to be done to make it possible for significant shareholders who are not simply intrusive and disruptive to be involved in the process," one SEC official said. In April, SEC Chairman William Donaldson said the "time has come" for a thorough review of the proxy rules to "ensure that they are serving the best interests of today's investors." The five-member commission is scheduled to get the report Tuesday and will then work with the staff to issue proposed rules. An SEC spokesman declined to comment. Any proposal to give shareholders greater access to corporate proxy material likely will be met with fierce opposition from the business community. Many large companies have told the SEC that allowing shareholder nominees on the proxy statement could be harmful and asked the agency to uphold the status quo. In a letter to the SEC last month, the Business Roundtable, a trade group representing large corporations, said investors "may nominate directors for self-serving reasons, such as personal gain or to further a political agenda." Intel Corp., in a letter last month, said giving investors access would "turn the proxy statement into a municipal or state voter's handbook" and confuse shareholders with too many candidates. Shareholder advocates long have pushed for rules that would ease the process of allowing investors to elect directors of their choice, rather than picking candidates selected by the company. The issue gained steam following scandals at companies such as Enron Corp. and WorldCom Corp., where directors were criticized for either ignoring or not spotting red flags. Sarah Teslik, executive director of the Council of Institutional Investors, an organization of labor and corporate pension funds, said shareholders aren't trying to declare "open season" on directors but want the right to nominate board members in certain circumstances, such as when there are "worrisome" problems at a company. Write to Deborah Solomon at deborah.solomon@wsj.com Updated July 10, 2003 online.wsj.com

To: StockDung who wrote (11842)	7/10/2003 10:10:52 PM
From: scion	Respond to of 19428

UPDATE 2-Cree confirms SEC probing fraud allegations Thu July 10, 2003 07:39 PM ET (Updates with more background on other lawsuits, closing stock price) SAN FRANCISCO, July 10 (Reuters) - The U.S. Securities and Exchange Commission is looking into securities fraud allegations on the part of semiconductor company Cree Inc. CREE.O made by its co-founder, according to a company filing with regulators made public on Thursday. Eric Hunter, who founded the Durham, North Carolina, company and stepped down as chairman about eight years ago, has filed a $3.3 billion lawsuit against Cree and its chairman, Neal Hunter, his brother. He accuses them of insider trading, shifting funds from affiliated companies to increase profits and filing false statements with the SEC, and has asked a court to order them to stop intimidating him and his wife, Jocelyn Hunter. In SEC documents filed on Wednesday, Cree and its chairman, who have denied the accusations, confirmed that the SEC recently requested information in response to Eric Hunter's allegations. "Although Eric Hunter has not been actively involved in management since 1995, he is one of the company's founders and the company is not surprised that the SEC would want to evaluate his allegations," Cree said in its filing. "The company's management looks forward to providing the information requested." The company and Neal Hunter filed documents asking the court to reject the harassment claims and provided affidavits of Cree Chief Executive Chuck Swoboda stating that Cree never instructed anyone to follow the Hunters, the filing said. Eric Hunter also has filed lawsuits against two other companies he founded which have had dealings with Cree, World Theater Inc. and Charles & Colvard Ltd. CTHR.O , alleging patent and securities fraud and unfair and deceptive trade practices, among other things. The Cree lawsuit alleges Cree executives have made false public statements about Eric Hunter's mental stability in an attempt to distract from the charges. Michael Unti, Eric Hunter's lawyer, said seven other shareholder lawsuits have been filed against Cree. A Cree spokeswoman said the company had no further comment beyond its filing. Spokespeople at World Theatre and Charles & Colvard were not available for comment late on Thursday. Shares of Cree closed at $16.50, down 12 percent, on Nasdaq. reuters.com