SANDUSKY — Cedar Fair LP and its largest shareholder eased a strained relationship this week when they agreed on the subject of providing shareholders the right to nominate candidates for the company's board of directors. Even if the process is enacted, it will have a limited affect this year because only one board seat is to be filled.
In its proxy statement for a special shareholders meeting May 24, Cedar Fair has two ballot proposals for shareholders that would give the stockholders the right to nominate board candidates. Although the amusement park chain's largest investor, Q Investments, also has proposed a nomination process, it said Friday it wants to withdraw its plan and back Cedar Fair's proposals.
A spokesman for Q Investments, a pair of Texas hedge funds that own 18 percent of Cedar Fair stock, said it will withdraw its proposal if time permits so there's no confusion on upcoming proxy ballots.
"Although we do not support the board on most issues, we do support what the board has proposed here, and we do give credit where credit is due," Q Investments said in a U.S. Securities and Exchange Commission filing.
Cedar Fair spokesman Stacy Frole said it's uncertain whether Q Investments' proposal can be removed from proxy ballots before the meeting. Cedar Fair's two ballot issues would change the company's limited partnership agreement by authorizing shareholders to nominate board candidates and create rules by which nominations can be made. Nominating power now is limited to board members. Q Investments' proposal would have changed only the partnership agreement to authorize shareholder nominations. In its proposals, Cedar Fair made no recommendation on how to vote but urged shareholders to reject Q Investments' proposal.
To pass, proposals need approval by 80 percent of the firm's shareholders, or 44.2 million of the 55.2 million outstanding shares. Uncast votes will count as "no" votes.
If the proposals pass, the board seat of Richard Ferreira is up for election at the general shareholder meeting tentatively set for June 9.
First Published April 9, 2011, 4:30 a.m.
