NEW YORK CITY-Morgans Hotel Group's Board of Directors has voted to terminate its poison-pill plan early and institute a new policy that requires shareholder approval of any future rights plan.
The hotel chain, which operates 13 boutique hotels and is currently embroiled in a legal wrangle with its largest investor, voted for a change that will require investors to endorse any new stockholder-rights plan within a year of its implementation. The vote will end the current rights plan by Oct. 3, two years before it was scheduled to expire, Morgans said in a statement.
“The decision to terminate the plan early and establish a new policy reflects our ongoing commitment to good corporate governance practices and responsiveness to our stockholders,” Chief Executive Officer Michael Gross said in a statement. See story at Bloomberg News.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
