Retired Biovail founder seeks more shareholder control over company

Biovail founder Eugene Melnyk is badgering the management of Biovail and demanding a shareholder vote on "several resolutions to bolster Biovail's corporate governance practices."

Biovail's three month stock price

Melnyk wants a special meeting of shareholders and wants to nominate two people to Biovail's board of directors.

Biovail is Canada's largest publicly traded pharmaceutical company

Melnyk says shareholder approval should be required for significant transactions. He also believes Biovail's termination payments are excessive and shareholders should closely monitor executive perks such as the use of personal aircraft and travel.

"It is important that this should be closely monitored and controlled in these difficult times," Melnyk said in a statement.

Melnyk retired as chairman and CEO of Biovail in 2007, but continues to take a deep interest in the pharmaceutical company. He tried but failed to overthrow the Biovail board last year and still faces an Ontario Securities Commission proceeding over activities while he was the drug company's chief executive officer.

He recently agreed to pay a $1 million fine in a case brought by the U.S. Securities and Exchange Commission over Biovail's accounting practices, although the agreement includes no admissions or conclusions about culpability.