Consolidated Tomoka Announces Action in Response to Shareholder Proposals
July 24 2009 - 9:07AM
PR Newswire (US)
DAYTONA BEACH, Fla., July 24 /PRNewswire-FirstCall/ --
Consolidated-Tomoka Land Co. (NYSE AMEX: CTO) (the "Company")
announced today that at a meeting of the Company's Board of
Directors held on July 22, 2009, the Board intends to submit to
shareholders binding proposals to amend the Company's Articles of
Incorporation at the Company's 2010 Annual Meeting of Shareholders
to declassify the Board and to limit the number of directors on the
Board to eleven. The Board also determined that in addition to its
recent election of an independent chairman it will amend the
charter of the Governance Committee to adopt an independent board
chairman policy. The Board made these determinations in recognition
of the voting results at the Company's 2009 Annual Meeting of
Shareholders, at which the Company's shareholders approved
non-binding proposals in favor of the adoption of an independent
chairman policy, the declassification of the Board and limiting the
Board to eleven members. The Board believes that submitting these
proposals to a binding vote of the Company's shareholders is the
appropriate response to that vote, and is consistent with the
Company's commitment to good corporate governance. The proposed
amendments to the Company's Articles of Incorporation will require
the affirmative vote of the holders of at least 85% of the
Company's shares entitled to vote on these matters in order to be
approved. If the new declassification proposal is approved by
shareholders, each director would stand for election annually; the
proposal will not affect the unexpired terms of previously-elected
directors. Consolidated-Tomoka Land Co. is a Florida-based company
primarily engaged in converting Company owned agricultural lands
into a portfolio of net lease income properties strategically
located in the Southeast, through the efficient utilization of 1031
tax-deferred exchanges. The Company has low long-term debt and
generates over $9 million annually before tax cash flow from its
real estate portfolio. The Company also engages in selective
self-development of targeted income properties. The Company's
adopted strategy is designed to provide the financial strength and
cash flow to weather difficult real estate cycles. Visit our
website at http://www.ctlc.com/. "Safe Harbor" Certain statements
contained in this press release (other than statements of
historical fact) are forward-looking statements. The words
"believe," "estimate," "expect," "intend," "anticipate," "will,"
"could," "may," "should," "plan," "potential," "predict,"
"forecast," "project," and similar expressions and variations
thereof identify certain of such forward-looking statements, which
speak only as of the dates on which they were made. Forward-looking
statements are made based upon management's expectations and
beliefs concerning future developments and their potential effect
upon the Company. There can be no assurance that future
developments will be in accordance with management's expectations
or that the effect of future developments on the Company will be
those anticipated by management. DATASOURCE: Consolidated-Tomoka
Land Co. CONTACT: Bruce W. Teeters, Sr. Vice President of
Consolidated-Tomoka Land Co., +1-386-274-2202, or Facsimile:
+1-386-274-1223 Web Site: http://www.ctlc.com/
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