The management of Independence Federal Savings Bank of Washington has fended off a shareholder's attempt to take over the thrift, but in the process it lost another seat on the board of directors.
At a meeting last week, shareholders elected two of the three nominees proposed by the $166 million-asset, African-American-controlled thrift's management, both of whom were incumbents. This secured the majority for the management, with five supporters on the nine-member board.
But Morton Bender, who is white, won a seat on the board for one of his two nominees. This is the fourth member that Mr. Bender, the largest shareholder, with a 21% stake, has succeeded in placing on the board in the last two years. Management has been fighting hard to stop Mr. Bender, who is also the chairman and majority shareholder of the $114 million-asset Colombo Bank in Rockville, Md., because it fears he plans to merge Independence into Colombo.
In contesting Mr. Bender, Independence proposed at the shareholder meeting forming a holding company, which would require two-thirds of shareholders to approve a merger instead of the 51% under the current structure. But the proposal failed to pass.
