More support for Sun Pharma in Taro takeover battle

Glass, Lewis & Co, LLC, an independent proxy advisory firm has recommended the shareholders of Taro Pharmaceutical Industries to vote against the proposals  made by Taro’s board of directors in the upcoming annual general meeting of Taro’s shareholders scheduled for December 31.

Earlier, another investment advisory firm Proxy Governance, had  recommended the shareholders of Taro to withheld their votes in the ensuing annual general meeting (AGM) of the company on the eve of new year.

In its report dated December 21, 2009, Glass Lewis cited the Taro board’s failure to file its annual reports for fiscal years 2006, 2007 and 2008 and its twice-rested financial statements for fiscal years 2004 and 2005 as proof that the board is “unable to fulfill its responsibilities to shareholders.”

Referring to the eight incumbent directors up for re-election, Glass Lewis advised that Taro’s shareholders should hold them accountable” for their “serious disservice to shareholders” by voting against them at the annual meeting, concluding that “the presence of new directors on the board might provide fresh perspective and a much needed transparency in the operation of the company.”

The Taro management proposes three resolutions - to re-elect eight directors, nominate two external directors and grant special privileges for certain of its current and former directors, in the AGM.