PHH OK’s policy changes
PHH Corp. said Friday that its board has approved changes to corporate governance policies.
These actions include the expiration of PHH’s shareholder rights plan. The board amended the expiration date of the plan to Friday from January 31, 2015.
The board adopted a shareholder rights plan policy, effective immediately, under which PHH will seek stockholder approval prior to the adoption of a shareholder rights plan, unless the board determines that it is in the best interests of the company and its stockholders to adopt a plan without such approval. The policy also states that if a shareholder rights plan is adopted without prior stockholder approval, the rights plan will expire after one year unless ratified by stockholders.
The board also adopted a majority voting policy for the election of its directors, effective immediately. Under the majority voting policy, if any director nominee receives less “for” votes than “against” votes in an uncontested election of directors, the director is expected to tender his or her resignation payday advance.
If an incumbent director fails to receive the required vote for re-election, then, within 90 days following certification of the stockholder vote, the corporate governance committee will determine whether to accept the director’s resignation and will submit such recommendation to the board.
PHH Corp. (NYSE:PHH) of Mount Laurel, N.J., provides mortgage and vehicle fleet management services. It has two main subsidiaries, mortgage originator PHH Mortgage and fleet management service provider PHH Arval.
Filed under: economics by Wolf