What holders of preferred stock in Emmis Communications have not earned are dividends during the last six quarters, as of 4/15/10. That means the board of directors may be increased from eight to ten, with the identities of the newcomers at the stockholders’ discretion.
The specific pieces of Emmis in question are under the 6.25% Series A Cumulative Convertible Preferred Stock category.
Holders of this issue will be able to submit nominations for the Board to the corporate secretary up until 4/26/10, and an election will be held annual 7/14/10 shareholders meeting.
Emmis informed the preferred shareholders that the nominations must be in writing and must include a statement from the nominee indicating willingness to serve.
Nominees must meet certain conditions: “In general, the Company’s directors should not serve on more than six other public company boards, should meet independence and diversity criteria, should not be over the age of 70, should have skills and experience that will complement the Company’s needs, and should not hold an interest in other broadcasters that would cause the Company to violate FCC ownership limits.”
RBR-TVBR observation: The fact that the Emmis board is growing entirely due to financial shortcomings would seem to breathe new life into the old saw “misery loves company.”