Eugene Melnyk shoots and scores. The former Biovail ceo and founder, who owns The Ottawa Senators hockey team, was handed a victory today by a Canadian court, which ordered a new vote by Biovail shareholders,Reuters reports.
The ruling came after Melnyk challenged procedures at the June 25 Biovail shareholders meeting at which he lost a proxy fight to displace the drugmaker's board. Melnyk subsequently argued in court that the meeting proceeded without a quorum.
Melnyk had withdrawn his dissident slate of directors before the vote, leaving the meeting with less than half of the company's stock represented. The Biovail board then hastily amended the bylaws to allow the vote to proceed with only 25 percent of the shares represented. (Back story).
A new meeting was ordered to be held by September 23. In a statement, Biovail execs reacted to the decision by lamenting the "delay, inconvenience, and expense that Mr. Melnyk's actions have caused for other shareholders."