Glass Lewis, a Leading Proxy Advisory Firm, Recommends That Equus Shareholders Vote on the White Proxy Card
May 05 2010 - 11:55AM
Business Wire
Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Fund”)
today commented on the reports issued by Glass Lewis & Co., and
RiskMetrics Group, the leading independent proxy voting and
corporate governance advisory firms. Here are some of the
highlights of their reports:
1. THE TRULITE CONFLICTS:
Glass Lewis
- “With respect to the Dissident’s
[Douglass Committee’s] non-incumbent nominees, Messrs. Godshall and
White serve as the vice chairman and chairman, respectively, of
Trulite, Inc. (“Trulite”), one of Equus’ portfolio companies. Paula
Douglass originated a $2.3 million loan to Trulite, on which
Trulite defaulted and upon which the Company [Equus] took action to
collect on April 23, 2010. We believe these issues raise questions
about whether certain of the [Douglass Committee’s] non-incumbent
nominees may take actions or have interests that are not aligned
with, or may, in fact, be inimical to, the interests of
shareholders.”
- Glass Lewis & Co., April 28,
2010 (Bracketed language added)
RiskMetrics
- “Another issue we have regarding
this [Douglass Committee’s] slate has to do with the presence of
two Trulite affiliated nominees, Jonathan Godshall and John White.
We agree that conflicts of interest could arise through their
presence on the board given Trulite’s default on the..debt it owes
to Equus.”
- RiskMetrics Group, May 4, 2010
(Bracketed language added)
2. THE DOUGLASS COMMITTEE NOMINEES’ LACK OF A VIABLE
PLAN:
Glass Lewis
- “The Dissident [Douglass
Committee] does not, to our knowledge, codify a specific plan for
the Company going forward.”
- Glass Lewis & Co., April 28,
2010 (Bracketed language added)
RiskMetrics
- “…we believe that [The Douglass
Committee] have not presented a viable plan to effect positive
change at the company.”
- RiskMetrics Group, May 4, 2010
(Bracketed language added)
“We are gratified but not surprised that Glass Lewis and
RiskMetrics both cited the conflicts presented by the three Trulite
Directors being part of the Douglass Committee slate and the
Committee’s lack of a plan to increase shareholder value,” said
Richard Bergner, Chairman of the Fund. “We believe these are just a
few of the many reasons that Equus shareholders should support
change at the Fund and reject the Douglass Committee nominees. Even
if shareholders have previously voted on the gold proxy card
supplied by the Douglass Committee, they can still support the new
direction of the Fund by heeding Glass Lewis’ recommendation and
voting the WHITE proxy card today.”
TO ENSURE THAT YOUR VOTE IS RECEIVED IN TIME, WE ENCOURAGE
YOU TO CAST YOUR VOTE USING THE INTERNET OR TELEPHONE BY FOLLOWING
THE INSTRUCTIONS PROVIDED ON THE WHITE PROXY CARD OR VOTING
INSTRUCTION FORM. YOU CAN ALSO FIND ADDITIONAL MATERIALS ON THE
ANNUAL MEETING AT WWW.EQUUSCAP.COM.
Shareholders who have questions or require assistance in voting
the WHITE proxy card, or need additional copies of the Fund’s proxy
materials, can call Georgeson Inc. toll-free at 866-821-2606 (banks
and brokerage firms should call 212-440-9800), or email
equus@georgeson.com.
About Equus
The Fund is a business development company that trades as a
closed-end fund on the New York Stock Exchange, under the symbol
"EQS." Additional information on the Fund may be obtained from the
Fund’s website at www.equuscap.com.
This press release may contain certain forward-looking
statements regarding future circumstances. These forward-looking
statements are based upon the Fund’s current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results to differ materially from those
contemplated in such forward-looking statements, including, in
particular, the risks and uncertainties described in the Fund’s
filings with the Securities and Exchange Commission. Actual
results, events, and performance may differ. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as to the date hereof. The Fund undertakes no
obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this letter
does not constitute an admission by the Fund or any other person
that the events or circumstances described in such statements are
material.
Important Information
The Fund filed a definitive proxy statement concerning the 2010
Annual Meeting of Stockholders with the United States Securities
and Exchange Commission (“SEC”) on April 12, 2010. The Fund has
also filed other relevant documents with the SEC. The Fund advises
stockholders to read the definitive proxy statement, as well as the
other relevant documents filed with the SEC, because they contain
important information about the election of directors and any other
matters to be presented at the 2010 Annual Meeting of Stockholders.
Stockholders may obtain free copies of the definitive proxy
statement and the other documents the Fund files with the SEC at
the SEC’s website at www.sec.gov. They may also access a copy of
the Fund’s definitive proxy statement by accessing
www.equuscap.com. In addition, stockholders may obtain a free copy
of the definitive proxy statement and other related documents by
contacting Georgeson Inc. by telephone toll-free at 866-821-2606
(banks and brokerage firms should call 212-440-9800), or by email
at equus@georgeson.com.
The Fund, its directors, some of its executive officers and
certain other of its employees are participants in the solicitation
of proxies in respect of the matters to be considered at the 2010
Annual Meeting of Stockholders. Information about the participants
is set forth in the definitive proxy statement. Information about
the participants’ direct or indirect interests in the matters to be
considered at the annual meeting is also contained in the proxy
statement referred to above.
Note: Permission to use quotations from RiskMetrics Group and
Glass Lewis & Co. was neither sought nor obtained.
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