VELAN Inc.
TSX : VLN

VELAN Inc.

February 02, 2012 16:53 ET

Velan Amends Its Corporate Governance and Human Resources Committee Charter and Adopts a Majority Voting Policy

MONTRÉAL, CANADA--(Marketwire - Feb. 2, 2012) - Velan Inc. (TSX:VLN) announces the approval by its Board of Directors of a majority voting policy with respect to the election of directors in an uncontested election. In the event that a nominee receives more "withheld" than "for" votes in an uncontested election, such person will be expected to submit to the Board of Directors, his or her resignation, to take effect upon acceptance by the Board. The Board of Directors, on the recommendation of the Corporate Governance and Human Resources Committee, will consider whether to request the person to resign.

The Corporation has also adopted modifications to the nominating and election process of its Board of Directors. Henceforth, the Corporate Governance and Human Resources Committee will propose for nomination 50% of the members of the Board of Directors, all of whom shall qualify as independent directors, so long as there is a single controlling shareholder (the Corporation is currently controlled by Velan Holding Co. Ltd.). It is anticipated that the controlling shareholder would propose to the Board of Directors the other nominees. In the event of the proposed election of an odd number of directors, the Committee and the controlling shareholder will be entitled to jointly propose one director. The Board of Directors will determine the nominees to be included in the management information circular as it deems appropriate.

Mr. Gabor Jellinek, Chairman of the Corporate Governance and Human Resources Committee stated "the Corporate Governance and Human Resources Committee considers that the foregoing measures address shareholder concerns ".

About Velan:

Velan Inc. is a world leading manufacturer of industrial valves. Velan Inc. is a public company with its shares listed on the Toronto Stock Exhange under the symbol VLN.

Contact Information

  • VELAN Inc.
    Tom Velan
    President and Chief Executive Officer
    (514) 748-7743
    (514) 748-8635 (FAX)

    VELAN Inc.
    John D. Ball
    Chief Financial Officer
    (514) 748-7743
    (514) 748-8635 (FAX)
    www.velan.com