LOS ANGELES -(Dow Jones)- Walt Disney Co. (DIS) criticized efforts by two dissident former shareholders to get information on how the votes were tallied in Chief Executive Michael Eisner's recent re-election to the board, saying the moves are only meant to "manufacture artificial controversy."
Earlier this week, former Disney directors Roy E. Disney and Stanley Gold sent a letter to the entertainment company's attorneys, requesting a copy of the ballot submitted by Fidelity Investments on behalf of participants in Disney's 401(k) plans.
The letter claimed the company has indicated it isn't certain how shareholders in its 401(k) plans voted, even though Fidelity has separately said it supplied Disney with its ballot on two separate occasions. Gold and Roy Disney claim the no-vote on Eisner's re-election by the 401(k) participants is rumored to be more than 70% of the shares held in Disney's plan.
At Disney's annual meeting March 3, shareholders withheld 43% of the votes cast for Eisner's re-election.
The former directors also requested a full transcript of the meeting and permission to review -- before IVX Associates finishes reviewing the vote tally -- all ballots cast at the meeting and proxies submitted by banks and brokers.
In a letter sent to the former directors' attorney, Disney said the total number of participants in its 401(k) plans is about 35,000 -- of which about 22, 000 are active employees -- and because voter turnout in the plan rarely exceeds 40%, the inquiry likely only relates to fewer than 10,000 voters.
Disney said it doesn't believe the agreed-upon vote certification process should be changed to focus on "so small a number of voters," especially because the company and the former directors will soon have access to the voting results after they are certified.
"Pending the completion of IVS's certification process, we must ask that you respect our agreement, in the interest of accurate reporting to all shareholders, and case your ongoing efforts to interfere with IVS's work," Disney said in the letter.
The company is sending Gold and Roy Disney a copy of the transcript of the annual meeting, although it noted the copy won't be free of charge.
-Susan Willetts; Dow Jones Newswires; 201-938-5400
Dow Jones Newswires 03-24-04 2037ET Copyright (C) 2004 Dow Jones & Company, Inc. All Rights Reserved.
Earlier this week, former Disney directors Roy E. Disney and Stanley Gold sent a letter to the entertainment company's attorneys, requesting a copy of the ballot submitted by Fidelity Investments on behalf of participants in Disney's 401(k) plans.
The letter claimed the company has indicated it isn't certain how shareholders in its 401(k) plans voted, even though Fidelity has separately said it supplied Disney with its ballot on two separate occasions. Gold and Roy Disney claim the no-vote on Eisner's re-election by the 401(k) participants is rumored to be more than 70% of the shares held in Disney's plan.
At Disney's annual meeting March 3, shareholders withheld 43% of the votes cast for Eisner's re-election.
The former directors also requested a full transcript of the meeting and permission to review -- before IVX Associates finishes reviewing the vote tally -- all ballots cast at the meeting and proxies submitted by banks and brokers.
In a letter sent to the former directors' attorney, Disney said the total number of participants in its 401(k) plans is about 35,000 -- of which about 22, 000 are active employees -- and because voter turnout in the plan rarely exceeds 40%, the inquiry likely only relates to fewer than 10,000 voters.
Disney said it doesn't believe the agreed-upon vote certification process should be changed to focus on "so small a number of voters," especially because the company and the former directors will soon have access to the voting results after they are certified.
"Pending the completion of IVS's certification process, we must ask that you respect our agreement, in the interest of accurate reporting to all shareholders, and case your ongoing efforts to interfere with IVS's work," Disney said in the letter.
The company is sending Gold and Roy Disney a copy of the transcript of the annual meeting, although it noted the copy won't be free of charge.
-Susan Willetts; Dow Jones Newswires; 201-938-5400
Dow Jones Newswires 03-24-04 2037ET Copyright (C) 2004 Dow Jones & Company, Inc. All Rights Reserved.