Shareholders of Farmers Banc National Corp. in Canfield, Ohio, rejected two key proposals at the company's annual meeting, the company said Friday.
Directors of the $1 billion-asset company submitted a proposal that would have eliminated preemptive rights under the company's articles of incorporation, which they say would have given the company more capital-raising flexibility.
A second proposal would have changed the quorum requirements needed to comply with Nasdaq listing requirements.
Though 80% of the shares voted at the annual meeting Thursday supported the proposals, only about 75% of the outstanding shares were voted. Thus, the board failed to garner the two-thirds support of outstanding shares required for approval.
"I am disappointed that a small percentage of nonparticipating shareholders could affect the vote," John S. Gulas, Farmers' chief executive, said in a press release. "These proposals were critical to updating 30-year-old policies that tie our hands in dealing with today's economic environment." Gulas said Farmers is exploring other options to boost capital ratios.
