An attempt by a 20-percent owner of Southborough electric vehicle components company Sevcon to overhaul its board of directors failed at a shareholder vote this month.
The proposal by former executive chairman Ryan Morris’ Meson Capital fell slightly short of a needed majority from shareholders. That means the board’s makeup will remain as it was.
All four director candidates nominated by Sevcon’s board of directors were re-elected and none of the three director candidates nominated by Morris were elected, the company said. Though Morris lost, he remains a member of the board of directors.
Morris’ investment firm, Meson Capital in San Francisco, owns 20 percent of Sevcon.
Sevcon makes control and power components for zero-emission, electric and hybrid vehicles.
Shortly before the shareholder meeting, Morris had urged shareholders to side with Meson Capital’s nominees, saying the firm was uniquely positioned to take advantage of the electrical vehicle market, but that the current board members were refusing to embrace the need for change.
Matt Boyle, Sevcon’s president and CEO said in a statement the company is “pleased the put the unfortunate distraction of the recent proxy contest behind us.”
“We are grateful for the reaffirmation from our stockholders that we — and not the dissident’s slate of directors — are best positioned to optimize the value of their investment in our company,” he said.
Morris said the board had wanted to cut his term short as a director and to replace him with a former member, but he remains on the board.
“Unfortunately shareholders opted for no change at the board which means I will have to work other avenues to improve the company,” he said. “I continue to own a great deal more stock than the rest of the board combined so my interests are aligned with shareholders.”
Sevcon announced its first-quarter earnings in Februrary, reporting revenues of $12.5 million that were attributed in large part to the acquisition of the Italian battery-charging company Bassi. Without that purchase, revenues were $1.7 million lower than in the prior-year period, reflecting continued weakness on the industrial side of the business, Sevcon said. The company’s operating loss was $2.4 million.
