Napster facing shareholder revolt
Say management not aggressive enough
27 June 2008 9:26 GMT / By Katie Scott
Napster is facing a battle with three of its shareholders.
The trio want election to the company's board arguing that the digital music service hasn't been aggressive enough in battling rival Apple and internet piracy.
Following on from a failed bid to get themselves nominated onto the Napster board, Perry Rod, Thomas Sailors and Kavan Singh are preparing an independent proxy.
According to Reuters, they are asking other shareholders to vote for them, as well as back proposals to separate the roles of chairman and chief executive, changes to the executive compensation rules and on a bylaw to require a majority vote for the election of directors.
In particular though, the trio have criticised the present management's "just wait it out" mentality towards rival Apple, which has more than 70% market share.
Napster is not commenting.
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