ePlus (PLUS) Holder Hovde Capital Wants Two Board Seats Created
In an amended 13D filing on ePlus Inc. (Nasdaq: PLUS), 15.5% holder Hovde Capital Advisors LLC disclosed that it sent a letter the company which requests the company to create two additional seats on its board of directors and appoint two persons nominated by the Hovde to fill these seats.
From the 'Purpose of Transaction' section of the filing:
"In light of, among other things, the preliminary findings of the Audit Committee with respect to certain of the Issuer's stock option grants, the statements of the Issuer regarding the actions it will take to address these findings, and the disappointing performance of the Issuer's stock, the Reporting Persons propose to change the present board of directors of the Issuer. Specifically, the Reporting Persons have sent a letter to Mr. Norton, dated August 15, 2006, by overnight courier to be delivered on August 16, 2006, which requests the Issuer to create two additional seats on its board of directors and appoint two persons nominated by the Reporting Persons to fill these seats. The Reporting Persons believe that by nominating two independent directors to the Issuer's board, the interests of the Issuer's non-management shareholders will be better served. Specifically, the Reporting Persons believe that the Issuer's shares are undervalued in the market and that, by actively participating in the Issuer's corporate governance, the Reporting Persons can assist the Issuer in enhancing the value of these shares."