Avid Bioservices Inc (CDMO)

[skweze]

IMO, the changes look like they could be preemptive in nature. Is the BOD expecting a hostile takeover bid? If that is the case, it is certainly good news for shareholders. Takeovers happen when a very sophisticated entity knows that a company is significantly undervalued, and would confirm the feeling of many longs that the current SP/Market Cap is simply too low.

There were two changes to the BY-LAW which I noticed. You are only commenting on one aspect of the change which pertains to the changes technically is more beneficial to management and the company than the shareholders. You simply only posted about this portion of the by-law change:
Quote:
establish advance notice requirements for stockholder nominations of candidates for election to the Board of Directors and for proposals to be brought by stockholders before any meeting of the Company’s stockholders; and
The other bylaw change is the more important one:
Quote:

establish a forum provision that provides that, unless the Company consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or the Company’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, the certificate of incorporation or the bylaws of the Company, or (iv) any action asserting a claim governed by the internal affairs doctrine. The provision further provides that any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Company shall be deemed to have notice of and consented to the provision.