Tens of thousands of AMC Entertainment Holdings Inc. shareholders expressed their desire to shake up the entertainment company's board in a recent vote, but their proposal was ultimately unsuccessful due to a significant number of no-shows and abstentions.
Proposal to Declassify Board and Shorten Terms
During the Wednesday shareholder meeting, the first of seven proposals put forward aimed to declassify AMC's board of directors and reduce the length of their existing terms so that they would conclude at that meeting. The proposal received over 34,000 "yes" votes, with approximately 6,000 "no" votes. However, the impact was diluted by nearly 800,000 abstentions and no-shows. According to AMC, the uncast votes held the same weight as votes against the proposal.
Dim Fate of Other Proposals
Similar fates befell the remaining proposals, including a non-binding advisory measure to approve the compensation package for select AMC executives. Ultimately, these proposals also failed to gain traction.
Ramifications on AMC's Stock
Following the shareholder meeting, AMC's stock experienced continued decline. After a 14% drop during regular trading hours, the stock fell an additional 1% in the extended session on Thursday. The decline was partially attributed to news released earlier regarding the company's plan for a $350 million stock offer.