Asure Software Privatization Opposed by Investor Holding 500,000 Shares
Citing Low Corporate Governance Score from Leading Proxy Firm RiskMetrics Group, Software Industry Professional and Experienced Micro Cap Investor Announces his Intentions Relating to Asure Software Going-Private Proposal
Phoenix, AZ (PRWEB) — Michael Chadwick, a private investor who currently holds 500,000 shares of Forgent Networks, Inc. d/b/a Asure Software (“Asure”) representing approximately 1.6% of Asure’s outstanding shares, citing independent research by a leading corporate governance rating agency, expressed his displeasure with the current management and Board of Directors of Asure and announced his intent to vote against the go-private proposal.
As of May 7, 2009, proxy advisor RiskMetrics Group (a.k.a. Institutional Shareholder Services) reported Asure Software’s Corporate Governance Quotient (CGQ®) was 81.4% worse than all Software and Services companies in its industry group (Source: Yahoo Finance). According to RiskMetrics Group’s website, the corporate governance rating is derived by scoring 7,400 universe companies individually using 63 variables across four chief criteria: 1) board of directors, 2) audit, 3) anti-takeover provisions, and 4) executive and director compensation.
“The shockingly low peer ranking by a leading governance authority, RiskMetrics Group, is beyond contestation and simply unacceptable. Leading corporate governance proponents, such as CalPERS have demonstrated time and again the conventional wisdom that fully accountable corporate governance structures produce, over the long term, the best returns to stockholders,” said Mr. Chadwick. Commenting further on Asure’s privatization proposals, Mr. Chadwick added “Going-private removes regulatory filing requirements and reduces management accountability. The idea of diminished visibility into Asure’s future operations given the ongoing hemorrhaging of millions of shareholders’ dollars is of grave concern. Management needs to immediately take action to improve corporate governance, not diminish it, as this is the best way to begin restoring stockholder value.”
Asure’s special meeting and stockholder vote is scheduled to be held on June 2, 2009, in Austin, Texas.
About Michael Chadwick:
Mr. Chadwick is a twelve year software industry veteran and seasoned investor in microcap, technology companies.