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Market Basket directors file countersuit
As threatened, the Class B directors of Demoulas Super Markets filed their own suit against the board, saying they were marginalized and kept in the dark by the majority Class A directors, leading to their decision to boycott meetings.
2 Min Read
As threatened, the Class B directors of Demoulas Super Markets filed their own suit against the board, saying they were marginalized and kept in the dark by the majority Class A directors, leading to their decision to boycott meetings.
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The suit comes only days after the shareholders led by Arthur S. Demoulas sued the B directors, seeking a court order compelling members to attend the next board meeting.
In the complaint, Class B directors William Shea and Terence Carleton say a new system of board committees has been used as a means to withhold information from them, saying they were denied opportunities to attend meetings of committees they did not serve on and that they were not granted access to minutes of their meetings and other documents detailing engagement of various consultants. They further allege that the board has systematically ignored items that Shea and Carelton have attempted to add to the agenda.
The Class B directors, aligned with Market Basket president Arthur T. Demoulas, have opposed actions of the Class A faction including the introduction of dividend for shareholders, changes to the profit-sharing plans and the engagement of executive recruiters. They are seeking an order that would permit them to inspect and copy such records and observe all board committee meetings.
