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I found this article to be interesting as it is a prime example of how shareholders can affect company actions. D.C. Capital Partners, L.P. is a major stockholder for Superior Industries International. D.C. Capital partners is a private equity investment fund which makes controlled investments in middle market companies that provide services in the Government Contracting and Engineering and Construction Services markets. They invest in sectors like intelligence, information technology, security etc. D.C. Capital issued a letter to it’s fellow stockholders expressing concern with the company’s management and it’s financial numbers including a steady low stock price mixed with underperformance in terms of their operations. They also took the liberty to nominate Raynard Benvenuti for election to the Board of Directors at the upcoming annual stockholder’s meeting. The current BOD has shown very little concern for D.C. Capital’s worry, a significant stockholder with 4.8% (1.2 million shares) of the company’s common stock. D.C. Capital believes the current BOD lacks the ability to successfully create and drive up value for all stockholders, introducing Benvenuti to turn the company around and change the spirit that the Board of Directors currently possess.

D.C. Capital then goes on to write a letter to all the stockholders involved in Superior Industries International, Inc. In the eyes of D.C. Capital, the Board is directly responsible for the company’s low stock price and the poor business decisions that have led to underdeveloped operations. D.C. Capital tried to keep the matter private by directly confronting the Superior about board size and the need for change in terms of members being “outdated.” When the board responded that they were complacent with the size of the board and the members upon it, D.C. Capital went public. D.C. Capital pleads that Superior Industries International is in desperate need of improved performance and stockholder value and suggests a new Board. In a comparison against other markets like NASDAQ and S&P 500, Superior Inds faced a negative 79% total return to investors in a 5-year period. A $100 dollar investment dated by 5 years is now worth $21 whereas $100 in NASDAQ invested at the same time, is worth $210. The Board has put the company in serious financial debt of about $800 million dollars, which on the track they are currently on, they will not be able to pay down before the loan matures.

This article was extremely interesting to me because it is a first hand example of what we read about and incorporated two important things in terms of corporate governance—proxy contest and submitting a resolution at the shareholder’s annual meeting. I think it is prominent to have an active BOD that’s main objective is the shareholders and doing right by them. From the looks of this letter, I believe it would be smart to have a fresh set of eyes on the board to effectively fix the problems D.C. Capital and it’s Superior company are facing. The stories with corrupt BOD like Sunbeam Co. and Enron have only proved negative so I think stockholders should be extremely cautious on decision making in this vote. Being that the board who made the decisions to get them in their financial position including the acquisition and poor performance numbers is still in charge, I sense some bias and lack of concern for stockholders. What do you think?

Below is the link of the article if that can help you to add anything.

https://dccapitalpartners.com/overview/index.html

https://www.prnewswire.com/news-releases/dc-capital-issues-open-letter-to-stockholders-of-superior-industries-international-300998021.html