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RCM Technologies Inc.’s (NASD: RCMT) shareholder IRS Partners No. 19 LP called on the publicly traded staffing firm to set a date for its annual meeting, saying the firm has previously announced a date by mid-April, according to a filing with the U.S. Securities and Exchange Commission. The shareholder has nominated two people for election to the board.
“The stockholders of RCM deserve the opportunity to participate in an open and transparent process that allows them to elect the two highly qualified candidates that IRS Partners has nominated to the RCM board of directors and make appropriate corporate governance changes through an annual ballot,” said Bradley Vizi, a partner at Legion Partners Asset Management, which manages IRS Partners’ 13.4 percent stake in RCM.
In January, RCM’s board adopted a stockholder rights plan.
“RCM faces a number of challenges, as illustrated by substantial multi-year declines in both sales and profits,” Vizi said. “Now is not the time to perpetuate the status quo or disenfranchise stockholders. There is considerable work to be done to enhance value for all stockholders, as the company’s financial performance meanders near historic lows. We believe the first step toward this goal is to engage all stockholders in a fair and democratic process by convening an annual meeting. We believe the company’s recent corporate actions to lower the company’s poison pill threshold without stockholder approval and now delay the annual meeting is further evidence of an entrenched board that warrants change.”
RCM Technologies, a Pennsauken, N.J.-based staffing provider, reported last week that first-quarter revenue rose 7.9 percent year over year to $41.2 million. Net income fell 9.3 percent year over year to $960,000.