By Kristin Jones
Quality Systems Inc. (QSII) has elected two directors nominated
by dissident board member Ahmed Hussein, and seven of the eight
nominees named by the company, amid a long-running proxy
battle.
Mr. Hussein has criticized the company's operating performance,
saying it has suffered as a result of poor corporate governance,
largely at the hands of fellow board member Sheldon Razin. The
company, which supplies medical-records software, has refuted Mr.
Hussein's characterizations, and has censured him for allegedly
violating the firm's insider trading policies.
It is unclear which of Mr. Hussein's nominees was elected to the
board, and the company said it would give more detail in the coming
days. The dissident shareholder had previously said John McDuffy,
one of his director nominees and a previous Microsoft Corp. (MSFT)
executive, would become the company's chairman if Mr. Hussein's
slate of directors was elected to the board.
Separately, the company said Wednesday that Scott Decker,
president of its NextGen Healthcare subsidiary, will resign from
the company as of Sept. 7. Mr. Decker has accepted an executive
position at another company in the healthcare sector, which Quality
Systems said is not a competitor.
Shares were up fractionally to $18.26 in after-hours trading.
Through the close, the stock was down 51% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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