BOULDER — Shareholders of Encision Inc. (OTC: ECIA), a medical-supply company, are sharing their displeasure with the company’s board of directors.
In a letter to the Securities and Exchange Commission, Tim Wynne, CEO of major Encision shareholder The OR Co., expressed disappointment with a unilateral amendment to Encision’s bylaws on May 30. The amendment changes how the company determines who is eligible to call a special shareholders meeting and establishing more rules regarding calling for special meetings.
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“This amendment serves no purposes other than to increase the administrative burden on shareholders attempting to properly exercise their rights and inhibit shareholder efforts to address the significant economic problems that continue to face the company,” Wynne wrote in a letter filed with the SEC on June 13.”
Wynne goes on to say that given previous criticisms he and his company have made about Encision’s leadership, that he believes the new bylaws are directed to him and his business partner, Brett Telford.
Encision’s CEO, Greg Trudel, did not return a voicemail requesting comment.
Wynne requests that shareholders be able to vote on the new bylaws, and that he is considering making a shareholder proposal at the 2017 annual meeting to eliminate the board’s ability to unilaterally alter bylaws without approval of the shareholders.
“As substantial shareholders in the company, we are concerned that the directors’ focus appears to be on protecting their own positions rather than turning the company around,” Wynne wrote. “As before, we would be happy to meet to discuss a mutually beneficial relationship, but given the company’s new June 30 deadline for shareholder proposals, it may be difficult to schedule that meeting soon enough. In the meantime, expect to hear more from us as disappointed shareholders.”