CytoDyn, a biotechnology company focusing on coronavirus therapies, is fighting Activists who want to take over its board of directors by declaring their director nominations unlawful, a seldom seen step in boardroom conflicts, according to two people familiar with the situation. The corporation, based in Vancouver, Washington, warned the activist group that their warning letter, in which it stated that it wanted to nominate five directors, violated its bylaws.
The letter also featured more than 50 inaccuracies, ranging from flaws in the nominees’ routine questionnaires to failure to properly declare the group’s funding, according to the report. The corporation stated in a letter to the Activists dated July 30 that the organisation does not have the ability to nominate any candidates for election as directors at the 2021 annual meeting since it did not meet the bylaw requirements.
The organisation, which owns around 1% of the company’s stock, claims that management and the board of directors failed to properly supervise the development of leronlimab, a monoclonal antibody investigational medication. The proxy battle is sponsored by a sub-group of a larger organisation that filed a regulatory filing in May stating its intention to “address the company’s underperformance” and “lack of trust in management.” The business, which is valued at $1.06 billion, said it received a request for records connected to leronlimab from the Securities and Exchange Commission and the Justice Department last week.