Judge orders new vote on Biovail board
An Ontario court judge on Wednesday ordered Biovail Corp to reconvene its annual meeting so investors can vote again on a board of directors.
In Ontario Superior Court, Justice Herman Siegel gave the Toronto-based pharmaceutical company 90 days from the original June 25 meeting to hold a new vote.
At the company's June annual meeting, founder Eugene Melnyk and his backers withdrew their votes from the board election, leaving less than 51 per cent of the shares outstanding represented. Melnyk had proposed his own dissident slate of directors.
Melnyk's representatives then walked out of the meeting after the directors passed a bylaw saying that only 25 per cent of the stock was needed for a quorum.
After the bylaw was passed, 97.6 per cent of the votes cast at the meeting backed the management slate of directors, but that was after Melnyk's supporters withdrew their proxies.
The issue went to court earlier this month.
Siegel ruled Wednesday against the change in the firm's bylaws.
In a statement, Melnyk said he was pleased with the judge's ruling.
"Today's court ruling means all shareholders will have an opportunity to further evaluate the two very different visions for the future of Biovail," said Bruce Brydon, Melnyk's choice to be CEO of the company. Brydon previously held that post from 1995 to 2001.
Melnyk had said he was unhappy with the direction and management of the company, in which he retains a 12 per cent stake.
Biovail shares rose 11 cents to close at $9.87 on the TSX.
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