Shareholder Justice!Here's the facts:
The recent shareholder meeting was composed of two factions: the Loyal Shareholders, who are happy with the current board, and the Plaintiffs, who want to take over the company and reinstate a board that will follow the orders of "a large shareholder".
There were two important votes held: one to repeal the recent amendments to the Company bylaws (which ensure fairness for all) and the other to vote in new board members proposed by the Plaintiffs. The same people who voted in favor of the first vote, also voted in favor of the second vote, so either both votes passed, or both votes failed.
The lawyers for the Plaintiffs tried to suggest that the shares owned by Wheatware could not be counted in the votes because they hadn't filed the proper forms with the SEC. They knew that if Wheatware were permitted to vote, the Loyal Shareholders would win. The problem with that is, if the Wheatware votes could not be considered, then the meeting did not have a quorum and everything that came out of it was invalid. Another meeting would have to take place, and the Loyal Shareholders would have more time to assemble their votes. If this were to happen, the Loyal Shareholders would win anyway.
There was also the matter of proxies. The SEC ruled that ALL proxies were invalid. If this is the case, then the proxies presented by the Plaintiffs during the meeting could not be counted. The SEC is fair that way. The result would be that the Loyal Shareholders win again. If the decision is turned around, then ALL proxies must be considered and the Loyal Shareholders win anyway.
So whichever way you look at it, the Loyal Shareholders win these votes by a landslide.
Shareholder Justice!